Delaware Surety Bonds

Delaware Surety Bond Overview

Many Delaware businesses need a surety bond, so that they are in compliance with state regulations. The bonds protect the state and its citizens from losses and damages due to violations of these regulations. Similarly, contractors in the state must also often get bonded as a guarantee that they will perform work in accordance with their contract.

How do bonds work?

Surety bonds are agreements between:

• The bond obligee - the party that requests the bond
• The bond principal - the party that need to get bonded
• The bond company - the party that issues and backs the bond

Under the bond agreement, the principal is bound to comply with a number of conditions - such as to comply with state laws or to perform work in accordance with various requirements. If the principal violates the bond's conditions, causing losses or injury to the obligee, the latter may file a claim against the bond. The bond company then steps in to investigate the claim and, possibly, pay out compensation to obligees.

If all of this is new to you, and you want to know more, see our 'What is a surety bond' guide for a fuller explanation of how bonds work!

You can find the bond you need in the table below. If you have trouble finding your bond, don’t hesitate to contact us at 866.450.3412. To learn more about the different types of bonds available in Delaware, see the sections below.

Types of Delaware Surety Bonds

The most common types of bonds issued in Delaware include license and permit bonds, construction bonds and court bonds.

• License and permit bonds are often required when applying for a business license.
• Construction bonds are asked for from construction contractors wishing to bid on public and private construction projects.
• Court bonds are required from Delaware courts in some cases.

License & Permit Bonds

In many cases, Delaware businesses are required to get licensed to meet state, local or city rules. Obtaining a license and permit bond is a usual prerequisite for business licenses.

Your Delaware surety bond functions as protection for the state and its citizens, ensuring that your business will abide by applicable regulations that govern your trade. If you commit fraud or break your obligations, a claim can be made on your bond up to its penal sum. If it’s proven, you’ll have to financially reimburse the affected parties.

Some of the most common Delaware license and permit bonds include the mortgage broker bond, the contractor license bond, and the freight broker bond.

Construction Bonds

In many cases, contractors in Delaware are required to post construction bonds. These surety bonds are used on a project basis when construction contractors want to participate in private and public construction contracting projects.

The purpose of construction bonds is to protect the project owners. They ensure that the contractor will abide by their contractual agreements and will deliver the work on time and according to the quality requirements.

The most common construction bonds are:

• Bid bonds
• Performance bonds
• Payment bonds
• Maintenance bonds

Court Bonds

A Delaware court might require an individual to obtain a court bond in certain specific situations. Court bonds are the least common category of bonds, but Bryant Surety Bonds will happily underwrite this type of bond for you.

When would you have to post a court bond? Some cases include:

• When bringing a court case to a higher instance (an appellate court), you will be asked to provide a supersedeas bond, also known as an appeal bond.
• If you have been assigned as a fiduciary of somebody’s assets or property, you will be required by a Delaware probate court to obtain a fiduciary bond.

Surety Bond Cost in Delaware

The cost of getting bonded is different from the surety bond amount that you are required to obtain. To get bonded, you need to pay only a fraction of that amount, called the bond premium. The bond amount, on the other hand, represents the penal sum that might be repaid on proven claims.

What determines my bond premium?

To set your exact bond price, your surety needs to examine your personal and business profile, and evaluate the risk of bonding you. If you are seen as a solid applicant, you can expect a lower bond premium.

The most important criteria for defining your premium are:

• Your personal credit score
• Business financials
• Assets and liquidity
• Industry experience

Applicants with high credit score are typically bonded at so-called standard market rates. The premiums for standard bonding market are usually in the range of 1%-4%.

Applicants with lower credit scores can also get bonded, though at higher rates. This is because sureties assume a higher risk when issuing bonds for applicants with lower scores. Rates for such applicants are typically between 5%-15%.

If you would like to get an estimate of your bond price, you can use our surety bond cost calculator below. Once you complete your full application, we will deliver your exact bond quote.

+ -

+ =

Surety Bond Cost Calculator

Bond Type Select Your Required Bond Auto Dealer BondCollection Agency BondContractor License BondDebt Collector BondFreight Broker BondMedicare/Medicaid BondMortgage Broker BondRetail & Professional Services BondSchool BondSmall Loan Company BondSports Permit BondTax & Utility BondTelemarketing BondTravel Agent BondAll Other License Bonds

State Requiring the Bond Select Your StateAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWashington D.C.West VirginiaWisconsinWyoming

Surety Bond Amount ($)

Select Your Credit Score Please select Above 700 650 - 699 600 - 649 550 - 599 549 and under

Calculate

* This form is for a rough estimate only.

Send the estimate to my email

Tell us where to send you your FREE estimate

Years in Business Please Select New 1 year 2 years 3 years 4 years 5+ years 10+ years

SEND ME MY ESTIMATE!

We'll never share your information with third parties

Thank you for your request!

The ballpark estimate on your premium is: $100 - $167

We've sent a copy of your estimate on your email as well.

Want an exact quote? Simply fill out our online application It's fast and 100% free!

Get a free exact quote Get another estimate

How to Apply for a Bond in Delaware

To get started with your bond application, follow the application link below for the bond you need.

License bond application

Complete our quick online application to start your bonding process. We will then contact you with a free quote on your license bond and more information.

Contract bond application

Complete the contract bond application based on the type of contract bond that you need. You will hear from us as soon as we have received and reviewed your application.

If you need help with your application or want to know more about the bonding process, our experts will be happy to assist you. Call us at 866.450.3412.

Further Reading

About us:

Bryant Surety Bonds

Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.