Overview of Kansas Surety Bonds Requirements
If you want to open a business in Kansas or participate in a public construction project, chances are you will be asked to obtain a surety bond.
Surety bonds are a frequent requirement for these parties and guarantee their compliance with local and state laws. They often also serve as a guarantee that you will comply with the conditions of a contract you have entered into with other private or public parties.
Why are bonds required?
Surety bonds serve as protection for the parties that request you to get bonded. They are like a line of credit which is issued to you by the surety that backs your bond. This line of credit may get used if someone suffers damages or losses due to your actions and requests compensation.
If this is the first time you’re getting bonded and all of this is new to you, see our ‘What is a surety bond’ guide for a detailed explanation of what bonds are, and how they work!
To learn more about the state bonding requirements, have a look at the sections below. There you can find further information on the types of bonds we underwrite, how much your bond might cost, and how you can get bonded in Kansas.
What Are the Different Types of Surety Bonds in Kansas?
There are three major types of surety bonds: license, contract, and court bonds.
License & Permit Bonds
These bonds are frequently required of businesses that need to get licensed. During their licensing process businesses need to submit the relevant bond to the respective public department or division.
Kansas license bonds are meant to protect the state and the public, from businesses who do not comply with state laws and regulations or financially harm their customers through fraud and other illegal activities. These bonds guarantee that customers will receive financial compensation if a bonded business is found to have engaged in dishonest practices.
The Kansas auto dealer bond, or the federally required freight broker bond, are some of the bonds we underwrite most frequently in the state of Kansas.
If you are looking for a certain type of bond, use the bond table below. To find out more about your bond premium see the cost section 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 (Local) Bond||City of Colby||Roofing Contractor License Bond||Apply Now|
|Investment Advisor (Blue Sky) Bond||Securities Commissioner||Uniform Surety Bond Form||Apply Now|
|Debt Consolidators Bond||Office of the State Bank Commissioner||Surety Bond Credit Services Organization||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Office of the State Bank Commissioner||Supervised Lender or Mortgage Company||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||State Bank Commissioner||Supervised Lender or Mortgage Company||Apply Now|
|Small Loan Companies Bond||Kansas State Banking Commission||Surety Bond Supervised Lender or Mortgage Company||Apply Now|
|Title Insurance Agents & Escrow Officers Bond||Commissioner of Insurance||Escrow, Settlement or Closing Accounts||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Department of Revenue - Division of Vehicles - Dea||Motor Vehicle Dealer||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Department of Revenue - Division of Vehicles - Dea||Motor Vehicle Dealer||Apply Now|
|Sport Permits Bond||Kansas Athletic Commission||Professional Boxing, Kickboxing & Full Contract Ka||Apply Now|
|Professional Licenses (All Other) Bond||Kansas Office of the Secretary of State||Health Care Card Supplier Bond||Apply Now|
|Schools (All) Bond||Kansas Board of Regents||Truck Driving School||Apply Now|
|Schools (All) Bond||Kansas Board of Regents||Private or Out-Of-State Institutions||Apply Now|
|Schools (All) Bond||Kansas Board of Regents||Private School License Bond||Apply Now|
|Alcohol (Retailers) Bond||Department of Revenue, Customer Relations, Miscell||Liquor Drink Tax Bond||Apply Now|
|Alcohol (Retailers) Bond||Department of Revenue - Alcoholic Beverage Control||Liquor Licenses Bond||Apply Now|
|Cigar/Cigarette & Tobacco Tax Bond||Kansas Department of Revenue||Tobacco Products Distributor's Tax Bond||Apply Now|
|Utility Deposit Bond||The Emipre District Company||The Empire District Company||Apply Now|
|Utility Deposit Bond||Westar Energy, Inc.||Westar Energy Electric Utility Service Bond||Apply Now|
|Money Transmitter Bond||OFFICE OF THE STATE BANK COMMISSIONER||Money Transmitter Bond||Apply Now|
|Non-Construction Performance Bond||Department of Health and Environment||Permit for Cleanup and Closure||Apply Now|
Contract bonds are required from licensed and bonded contractors in Kansas who want to bid on a project or will be working on a construction project in the state.
These bonds serve as a guarantee that applicants will comply with the conditions of the contract they have made with the project owner, as well as with the regulations for contractors in the state of Kansas.
Court bonds are most often required by courts, in cases when a court ruling is being appealed by an individual, or whenever an individual is appointed as someone’s fiduciary and must provide a financial guarantee to assume this function.
To find out more about any one of these bonds or have any other surety bond-related questions answered - call us at 866.450.3412. Our experts are here to help you with getting your bond.
How Much Does it Cost to Get Bonded in Kansas?
How are bonds paid for?
To get bonded, applicants must pay a surety bond premium.
The total bond amount is the maximum sum that the surety company can extend to claimants, in the case of a claim against the bond. The premium, or the bond rate, is based on the total amount of the bond and is a percentage of that amount
For example, if you need to get a $30,000 Kansas auto dealer bond, and are offered a 1% rate, you will need to pay $300 to get bonded.
The rate you need to pay is decided on by the surety on the basis of the criteria detailed in the next section.
What determines the cost of your bond?
In order to determine a relevant and appropriate bond cost for an applicant, sureties check the applicant’s personal credit score, among other things. Credit score is considered a very effective predictor of the risk of claims. Among other factors, sureties also take into account applicants’:
- Financial statements
- Asset profile and liquidity
- Industry experience and overall work record
Applicants who have a high credit score, one of 700 FICO or more, are offered a low premium on their surety bonds because high scores correspond with a lower chance of claims. Such applicants are therefore offered standard market rates, which are around 1%-3% of the bond amount or lower.
Applicants with slightly lower credit scores, below 700 FICO, are typically offered somewhat higher rates, upward of 3%.
Can applicants with bad credit get bonded?
Though they may have been turned down elsewhere, applicants with a lower credit score can also get bonded. Our Bad Credit Surety Bond Program is designed to accommodate such applicants and make bonds available to them.
Rates under this program range between 5%-15%, due to the higher risk sureties perceive in issuing bonds for low credit applicants.
To get an estimate of the cost of your bond, try our surety bond cost calculator below. You can also get a precise and entirely free quote on your bond, by completing our bond application form. Processing takes a short amount of time for most bonds so you can expect to hear from us soon!
Surety Bond Cost Calculator
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How to Get Bonded in Kansas
Applying for a bond is quite simple. Select the right application form, depending on the bond type you need, and follow the steps.
License bond application
To apply for a license bond, complete our online form.
We’ll get in touch with you shortly to provide you with a free quote, along with more information about finalizing the application process. Depending on the bond you need, we may also ask you to provide us with a bit more information.
Contract bond application
To apply for a contract bond, go ahead and complete the online application depending on the type of the project you need to get bonded for. Soon after we’ll get in touch with you to provide you with a quote and more information on your application.
You can also reach us at 866.450.3412 anytime to speak to one of our experts and request further information or receive help with your application. We will be happy to help you get bonded!