Hawaii Surety Bonds Overview
Individuals who wish to obtain a business license in Hawaii are often required to provide a bond along with their application. Bonds are often also required of contractors before they are allowed to bid or perform on state, federal, or private construction projects.
Why do I need to get bonded?
A surety bond agreement is a financial guarantee that the bonded party will comply with certain legally-binding conditions. Bond conditions typically include the requirement to comply with responsibilities and obligations as specified in state laws and regulations.
If a bonded party violates the bond conditions by causing losses and damages to individuals or the state, a claim can be filed against their bond. Such a claim is then assessed by the surety, and proper compensation is made to the claimants. By doing this, the bond is a form of financial security.
If this is your first time getting bonded, see our 'What is a surety bond' guide for in-depth information about how bonds work, and why they are required.
Ready to apply for your bond? Get bonded straight away by finding your bond in the table below and clicking the ‘Apply’ button.
For more information about the types of surety bonds in Hawaii, how rates are determined and how you can get bonded, have a look at the sections below.
Find the Bond You Need
The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".
|Freight Broker Bond (BMC-84)||FMCSA||N/A||Apply Now|
|Contractor License Performance & Payment (State) Bond||Dept of Commerce and Consumer Affairs||Contractors License||Apply Now|
|Contractor License Performance & Payment (State) Bond||City and County of Honolulu||City of Honolulu Trenching Bond||Apply Now|
|Investment Advisor (Blue Sky) Bond||Department of Commerce and Consumer Affairs||BOND FOR INVESTMENT ADVISER IN SECURITIES||Apply Now|
|Collection Agency Bond||State of Hawaii||Collection Agency Bond||Apply Now|
|Professional Fund Raisers Bond||Department of the Attorney General - Tax Division||Professional Fund Raisers||Apply Now|
|Insurance Adjusters Bond||Hawaii Insurance Division||Public Adjuster Bond||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Motor Vehicle Industry Board - Department of Comme||Motor Vehicle Dealer||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Motor Vehicle Industry Board - Department of Comme||Motor Vehicle Dealer||Apply Now|
|Sport Permits Bond||HI Mixed Martial Arts Program||Promoter's||Apply Now|
|Detectives Bond||Board of Private Detectives & Guards||Private Detective, Guard or Agency||Apply Now|
|Employment Agencies Bond||State of Hawaii Prof. Empl. Organiation Program||Professional Employer Organization Bond||Apply Now|
|Cemetery Permits Bond||Department of Commerce & Consumer Affairs||Cemetery Authority Bond||Apply Now|
|Professional Licenses (All Other) Bond||Dept. of Commerce and Consumer Affairs||Activity Desk||Apply Now|
|Professional Licenses (All Other) Bond||DCCA||Time Share Plan||Apply Now|
|Schools (All) Bond||Dept of Education Community Education Center||Private Trade, Vocational or Technical School Bond||Apply Now|
|Schools (All) Bond||Dept of Commerce and Consumer Affairs||Prelicense Real Estate School and Continuing Edcua||Apply Now|
|Money Transmitter Bond||Dept of Commerce and Consumer Affairs||Money Transmitters License||Apply Now|
|Telemarketing/Phone Solicitor Bond||Department of the Attorney General - Tax Division||Telemarketing/Phone Solicitor||Apply Now|
Types of Surety Bonds in Hawaii
When you apply to get bonded, you will likely be asked to obtain a bond from one of the following categories:
- License and permit
- Contract bonds
- Court bonds
License & Permit Bonds
The state of Hawaii has a number of requirements and regulations concerning the licensing of businesses. Many businesses in the state are required to get a business license before they can operate legally. One of the requirements of getting licensed is for applicants to obtain a license and permit bond.
This type of bond serves as a guarantee that bonded businesses and individuals will perform business in compliance with state rules and regulations. The bond extends protection to the public in cases of fraud and dishonesty on the side of the business, and offers individuals financial compensation when they file a claim against the bond.
Among the most popular license bonds in the state are the auto dealer bond, the contractor license bond, and the freight broker bond. Apart from these, many other businesses in the state also need to get bonded.
Contract bonds are bonds that contractors must obtain as a condition for commencing work on a construction project. They are sometimes also called construction bonds. This category includes bid bonds, payment and performance bonds, and maintenance bonds.
Whether a contractor needs to obtain a bond depends on the project and the contract conditions. Typically, state and federal construction projects require contractors to obtain one or a number of different contract bonds. The purpose of these bonds is to guarantee that Hawaii contractors will comply with state and federal requirements and regulations for contractors.
A court bond is a type of bond requested of courts in any state when individuals appear before the court for a variety of reasons. For example, a Hawaii court may order someone to obtain a supersedeas bond when they wish to appeal a court ruling. Alternatively, someone appearing in front of a court to assume the role of someone’s fiduciary will be asked to obtain a fiduciary bond.
Need more information? Call us at 866.450.3412 for any bond-related questions you have.
How Much Does a Surety Bond Cost in Hawaii?
Your bond rate – or surety bond premium – is the price you need to pay to obtain your bond. It is a percentage of the full amount of your bond.
The full bond amount is the maximum sum of compensation that your bond guarantees to anyone who files a claim against the bond.
How is the bond premium determined?
How high or low your premium will be is determined by the surety when it receives your surety bond application. Your personal credit score is the criteria that sureties always take into account as it is a reliable indicator of an applicant’s overall financial status. Sureties further consider:
- An applicant’s financial statements
- An applicant’s asset profile
- An applicant’s work experience and record
Because credit scores are so reliable, rates often reflect how high or low an applicant’s score is. Applicants with a high credit score usually have to pay a rate between 1%-4% of the total amount, also known as a standard market rate.
Applicants with a lower credit score can also get bonded. Rates for such applicants range between 5%-15% of the bond amount. These higher rates are due to the increased risk that sureties perceive in issuing bonds to applicants who have a lower score.
If you’d like to get an estimate of the cost of your bond, try our surety bond cost calculator below!
Surety Bond Cost Calculator
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For additional information about how premiums are determined, see our surety bond cost page.
Get Your Hawaii Surety Bond
To apply for your surety bond, follow the instructions below, depending on the type of bond you require.
License bond application
To apply for a license and permit bond, simply complete and submit our online application. We will then provide you with a free and exact quote on your bond, and more information about completing the bonding process.
Contract bond application
To apply for a contract bond, complete the online application form, depending on your bond type. We will soon contact you with a quote and instructions for next steps..
If you have any questions about the bonding requirements in Hawaii, call us at 866.450.3412!