Louisiana Surety Bonds Overview
Applicants for many different types of business license in the state of Louisiana are required to post a surety bond during the licensing process. Similarly, contractors who want to bid or perform on a construction project in the state, especially on bigger projects, often need to obtain one or several surety bonds.
What is the purpose of the bond?
The purpose of surety bonds is to offer protection to the parties that require the bond, usually the state, which also represents the public. Bonds are three-party agreements between:
- The party that requires the bond, the bond obligee
- The party that gets bonded, the bond principal
- The party that backs the bond, the surety bond company
The bond offers protection to obligees in two ways. On the one hand, it serves as a guarantee that the principal will comply with the conditions of the bond which typically feature various responsibilities and obligations.
On the other hand, the bond also provides financial protection to obligees in cases in which a principal violates the bond agreement and causes losses or damages to anyone protected by the bond.
You can learn more about how exactly the bond provides protection from our detailed ‘What is a surety bond’ guide!
To get started with your bond application right away, find the bond you need in the table below, and follow the application link.
To find out more about the different types of bonds available in Louisiana, see the sections that follow.
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||Parish of Ascension||(Parish of Ascension, LA) Billboard Installation B||Apply Now|
|Contractor License Performance & Payment (State) Bond||Secretary, Dept of Revenue||Contractor/Sub-Contractor||Apply Now|
|Excess Weight, Other Highway & Street Permit Bond||LA Dept of Transportation Oversize||Highway Permit Bond||Apply Now|
|Debt Consolidators Bond||Louisiana Attorney General||Credit Repair Services||Apply Now|
|Insurance Adjusters Bond||Department of Insurance||Public Adjusters||Apply Now|
|Insurance 3rd Party Administrator Bond||Louisiana Department of Insurance||Insurance 3rd Party Administrator Bond||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Office of Financial Institutions||Residential Mortgage Originator||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Office of Financial Institute||Residential Mortgage Originator||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Office of Financial Institutions||Residential Mortgage Lender Surety||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Office of Financial Institutions||RESIDENTIAL MORTGAGE LENDER SURETY||Apply Now|
|Small Loan Companies Bond||Office of Financial Institutions||Pawnbroker Bond||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Recreational and Used Motor Vehicle Commission||Motor Vehicle Dealer||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Lousiana Motor Vehicle Commission||New Motor Vehicle Dealer Bond||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Recreational and Used Motor Vehicle Commission||Motor Vehicle Dealer||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||Department of Public Safety||Auto Title||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||LA Dept of Public Safety and Corrections||Department of Public Safety & Corrections Office o||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||LA Dept of Public Safety and||Offical Motor Vehicle Inspection Station Bond||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||Louisiana Motor Vehicle Commission||Recreational Products Dealer Bond||Apply Now|
|Sport Permits Bond||LOUISIANA STATE BOXING &||State Boxing & Wrestling Commission||Apply Now|
|Professional Licenses (All Other) Bond||Office of Financial Institutions||Pawnbroker Surety||Apply Now|
|Professional Licenses (All Other) Bond||Louisiana Public Service Commission||Intrastate Telecommunications Service Provider Bon||Apply Now|
|Schools (All) Bond||State of Louisiana Board of Regents||Blanket Bond for Solicitors (School)||Apply Now|
|Schools (All) Bond||State of Louisiana Board of Regents||Proprietary School Certificate of Registration Bon||Apply Now|
|Schools (All) Bond||Office of Motor Vehicles||Privately Owned Driving School Bond||Apply Now|
|Cigar/Cigarette & Tobacco Tax Bond||Department of Revenue||Tobacco Tax Bond||Apply Now|
|Fuel Tax (All Others, Sellers & Users) Bond||Louisiana Department of Revenue||Motor Fuels Tax Surety Bond||Apply Now|
|Utility Deposit Bond||Claireborne Electric||Utility Payment Bond||Apply Now|
|Utility Deposit Bond||SWEPCO||In Lieu of Cash Deposit Bond||Apply Now|
|Utility Deposit Bond||Entergy Gulf States Louisiana, LLC||Electric and or Gas Service Bond (Entergy Gulf Sta||Apply Now|
|Utility Deposit Bond||Cleco Louisiana||Utility Payment Bond (CLECO)||Apply Now|
|Financial Guarantee (All Other) Bond||Department of Enviromental||Waste Tire Transporter Financial Guarantee Bond||Apply Now|
|Money Transmitter Bond||Office of Financial Institutions||SALE OF CHECKS/MONEY TRANSMISSION SURETY||Apply Now|
|Telemarketing/Phone Solicitor Bond||Louisiana Dept of Justice||Professional Solicitor||Apply Now|
|Appraisal Management||REAB||Appraisal Management Company Bond||Apply Now|
Types of Surety Bonds in Louisiana
The following three main types of bonds are available in the state, depending on what you need to get bonded for:
- License and permit bonds are issued if you need to get bonded to obtain your business license
- Contract bonds are issued if you are bidding or performing on construction projects and need to guarantee your bid or performance under a contract
- Court bonds are issued when you are required to furnish a bond by a Louisiana court
License & Permit Bonds
When you’re starting a new business in Louisiana you might be asked to get a license from a city, local or state authority, which usually includes posting a license and permit bond. For some trades, the same rules apply across the U.S. In most cases, there are local or state rules that you have to comply with.
License and permit bonds are required by licensing authorities, or the obligee of the bond, in order to protect the public. If you act in a harmful or fraudulent way, or otherwise don’t follow the applicable rules while conducting your business, the bond is there to cover any financial harm caused by your activities.
When bidding on private or public construction projects, contractors are usually required to post contract bonds.
This type of bonds applies only to the particular project under which contractors need to get bonded. Contract bonds ensure that your contracting business will follow all contractual obligations set when you’ve been granted a project.
The most common contract bonds include:
- Bid bonds
- Performance bonds
- Payment bonds
- Maintenance bonds
Court bonds are the third main type of bonds issued in the state. A Louisiana court might ask you to post a court bond in one of the following cases:
- When bringing a case to an appellate court, you will need to obtain an appeal bond, also known as a supersedeas bond.
- If you are appointed as a guardian of another person’s property or assets, which means you are a fiduciary, a Louisiana probate court is likely to require from you a fiduciary bond.
Call us at (866) 450-3412 if you have any questions about these bonds or the bonding requirements in Louisiana!
How Much Does it Cost to Get Bonded in Louisiana?
While the first impression of the bond amounts might seem very high, the actual price you pay to get your bond is only a percentage of that amount and is called the bond premium. The total bond amount represents the penal sum of the bond, which can be used as a compensation in case you transgress the contractual obligations of your bond.
The cost of your bond is usually only a small percentage of the bond amount if you qualify for bonding at the standard market rates.
How is my premium determined?
When you apply for a bond, the surety conducts a thorough examination of your personal and business finances, focusing primarily on your personal credit score. On the basis of this assessment, it sets the premium you need to pay, which corresponds to the risk level involved in getting you bonded.
Your surety bond cost will depend on:
- Your credit score
- Personal and business finances
- Assets and liquidity
- Industry experience and business know-how
Applicants who have a high credit score, one of 700 FICO or more, will usually be offered a rate between 1%-4% of the full amount of their bond.
If, on the other hand, you have a lower credit score, you are more likely to be offered a rate between 5%-15% of the total bond amount. Applicants with low credit scores, or other negative financial records, pose a higher risk for sureties, which is why rates for them are higher. But you can improve your rate significantly over time by working on improving your personal finances!
Want to get an estimate of your bond cost? Try our surety bond cost calculator below!
Surety Bond Cost Calculator
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See our surety bond cost page for a more detailed explanation of how bond rates are determined!
How to Get Bonded in Louisiana
Ready to get bonded? Follow the instructions below for the type of bond you need.
License bond application
To apply for this type of bond, complete our online bond form first. We’ll soon get in touch to provide you with your free and exact quote, along with further details on finishing the application.
Contract Bond Application
To apply for a contract bond, simply go to our online application page and choose the bond type which you need for your contract. After you complete the application, we will get in touch with you to provide you with more information on your bond quote.
If you require any assistance with your application or have any further questions about getting bonded in Louisiana, call us at (866)-450-3412 anytime!