Vermont Surety Bonds

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Surety Bond Professionals has been providing surety bonds in Vermont, the rest of New England, and nationwide for more than three decades. We can meet any surety needs you may have. Learn more about common types of bonds below, or request a quote now if you know what you need.

Continue reading below to learn more about common Vermont bonding requirements, or use our online form to request a quote now.

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Required Surety Bonds in Vermont

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

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Required Surety Bonds in Vermont

Vermont is no different from other states in requiring three main categories of bonds: construction bonds, license bonds, and court bonds. Although there are a few bonds that don’t fit neatly into one of these categories, the vast majority do. We can provide many other types of bonds, so don’t hesitate to contact us with any specific needs.

Vermont Construction Bonds

In Vermont, constructions bonds, such as bid bonds, performance bonds, and payment bonds, are typically required by municipalities, not at the state level. Local governments often require surety bonds as a condition for bidding on or being awarded a public works contract. These bonds are intended to protect the municipality and taxpayers against financial loss due to the actions of a contractor. They can include but are not limited to:

  • Bid bonds. A bid bond guarantees that a contractor will accept the contract if it is awarded to him. Learn more.
  • Performance Bonds. A performance bond guarantees that the contractor will complete the project in its entirety, in compliance with the terms of the contract and applicable laws and regulations. Learn more.
  • Payment Bonds. A payment bond guarantees that the contractor will pay suppliers, workers, and subcontractors in a timely manner, as specified in the contract. Learn more.

We specialize in construction bonding. You can rely on our experience for answers to your questions, and you can leverage are broad provider network to take advantage of competitive pricing.

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Vermont License & Permit Bonds

In Vermont, relatively few businesses must be licensed at the state level. Those that do, however, may also be required to purchase a license bond as a condition of licensing. The most common business licenses required are for retailers selling liquor or tobacco, investment advisors, mortgage lenders and brokers, and motor vehicle dealers. Anyone applying for a license for the first time or renewing a license in one of these fields will need to obtain or renew a license and permit bond.
These bonds guarantee that the business will operate in a lawful and ethical manner. This protects both the state and consumers against financial loss due to the deliberate or negligent bad acts of the licensee.

Vermont Court Bonds

Vermont courts at any level can require bonds. They are most often required for:

  • Appeals. Plaintiffs or defendants involved in an appeal may be required to obtain a bond in order to guarantee that any court decision ordering the return of property or payment of damages and court costs will be obeyed. Learn more.
  • Fiduciary Roles. The court may require a bond to guarantee that court-appointed custodians, guardians, trustees, or executors carry out their fiduciary duties in accordance with the law and the terms of their appointment. Learn more.

Speak with one of our expert agents today about any bond a Vermont court is requiring you to obtain— or request an online quote.

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Our experienced professionals will gladly answer any questions you may have about Vermont surety bonds to help you get the bonds you need. Request a quote today!

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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.