South Carolina Surety Bonds

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Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your South Carolina surety bond needs.

Required Surety Bonds in South Carolina

Typical South Carolina bonds include (click on any for more info):

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Required Surety Bonds in South Carolina

All South Carolina surety bonds can be broadly categorized as construction and contractor bonds, license and permit bonds, or court bonds. There are multiple bond types within each category.

South Carolina Construction & Contractor Bonds

South Carolina’s “Little Miller Act” requires a bid bond from any contractor competing for a publicly funded project in a sealed bidding situation. The winning bidder must also obtain both a performance bond and a payment bond, but this requirement may be waived for projects valued at $50,000 or less.

South Carolina License & Permit Bonds

The South Carolina Department of Labor, License, and Regulation issues most of the occupational and professional licenses in the state, through more than 40 different licensing boards, commissions, and councils. In many cases, purchasing a license and permit bond is a mandatory step in the licensing process.

South Carolina Court Bonds

South Carolina’s courts have the option of ordering someone to obtain a surety bond. An appeal bond may be required from parties involved in a case under appeal, particularly if contested property is at stake. A probate bond can be required of anyone taking on fiduciary responsibilities, such as an executor of an estate or guardian of a minor.

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Frequently Asked Questions

There are three parties to every surety bond agreement, which is a legally binding contract:

  • The “obligee” is the state or local agency requiring the surety bond.
  • The “principal” is the party required to purchase the bond.
  • The “surety” is the company underwriting and issuing the bond.
  • The obligee sets the required amount of the bond, which is the maximum amount that will be paid out on a claim. The obligee also spells out the conduct required of the principal in order to avoid claims against the surety bond.

Any party who suffers a financial loss because the principal has violated the terms of the bond has the right to file a claim against the bond. The principal is solely responsible for paying all valid claims.

However, the surety will often pay a claim and wait to be reimbursed by the principal. This ensures timely settlement of the claim and gives the principal some time to gather the necessary funds.

What the principal in a bond agreement actually pays for a surety bond is a small percentage of the required bond amount established by the obligee. That percentage, known as the premium rate, is determined by the surety company based on the applicant’s credit score and other indicators of the likelihood of claims being filed against the bond. Those with good credit can expect a rate of 1-3%. Those with poorer credit may pay a higher premium.
No claim against a bond will be paid until the surety company has investigated and determined that it is valid. After making payment to a claimant, the surety company will demand reimbursement from the principal.