Mississippi Surety Bonds

Mississippi Surety Bonds Overview

Surety bonds are required for several purposes in the state of Mississippi. Many applicants for a business license can expect to be requested to submit a surety bond during the licensing process. Contractors who wish to bid or perform on a public, state or federal construction project are also commonly required to get bonded.

What is the purpose of surety bonds?

Surety bonds are agreements between three parties:

• The party that is protected by the bond, the bond obligee
• The party that is required to get bonded, the bond principal
• The party that issues and backs the bond, the surety bond company

Bond agreements guarantee that the principal will comply with certain conditions, such as specific laws or obligations in relation to the obligees.

If a principal violates the bond agreement and causes losses to the obligees, the bond also functions as protection. It guarantees that a financial compensation, up to a certain dollar amount, will be made available to cover such losses.

To get an even better understanding of how bonds work see our ‘What is a surety bond’ guide!

If you want to go straight to your bond application, use the table below to find the specific Mississippi surety bond you need.

For a complete overview of the different bonds available in the state, see below!

Types of Mississippi Surety Bonds

Depending on what you need to get bonded for, you will need to choose from one of the following three main types of surety bonds:

• If you are undergoing a business licensing process, you will likely need to obtain a license and permit bond
• If you are construction contractor, you may need to obtain one or several different contract bonds to work on public or private construction projects
• If you will be appointed as someone’s guardian or fiduciary as well as in a host of other cases, you will need a court bond

License & Permit Bonds

Many Mississippi businesses need to get a license in order to be in compliance with state, local or city requirements. As a part of the licensing, you might be asked to get a license and permit bond.

The authorities that ask for such a bond include this requirement in order to protect the general public from potential misuse and fraud that businesses might commit.

The bond acts as an extra guarantee that your company will act lawfully. In case you violate the rules, an affected party can make a claim on your bond. Proven claims provide financial compensation to the claimant, up to the penal sum of the bond.

Some of the most commonly obtained license and permit bonds are the auto dealer bond, the contractor license bond, and the freight broker bond.

Contract Bonds

Contract bonds are another type of commonly used bonds. They are required when you are bidding for private and public construction contracting work. Their application is project-based.

The goal of contract bonds is to safeguard the interests of project owners. They guarantee you will fulfill your contractual obligations, and will meet all necessary deadlines and quality requirements. The usual contract bonds that are needed for project bidding include:

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

Court Bonds

For some particular cases, a state or local court might ask you to post a court bond. The typical situations in which you would need such a bond include:

• If you want to bring a court case to an appellate court, you might need to obtain a supersedeas bond, also known as an appeal bond
• A state probate court can require that you post a fiduciary bond if you are nominated as a fiduciary, which is a guardian of another person’s property or assets

If you need any further clarification about the different types of bonds in the state, call us at 866.450.3412!

What’s the Cost of a Surety Bond in Mississippi?

While the amount of the bond that you are required to post might seem considerable, this is not your actual surety bond price. The bond amount is the maximum penal sum that can be repaid to affected parties on proven claims.

The surety bond cost on the other hand, is only a fraction of this sum. It is also called the bond premium and is set by the surety which issues the bond.

How is the exact amount of the premium determined?

The specific bond premium for your case is set on the basis of certain personal and business indicators. Your surety will primarily examine your personal credit score, but may also look at your overall financial situation, and the stability of your business. The stronger your finances are, the lower your bond price will be.

The typical criteria, apart from credit score, that are considered are:

• Business finances
• Assets and liquidity
• Professional experience

Applicants with high credit scores are typically offered a premium between 1% and 4% of the full bond amount. Those who have low credit are bonded at a rate between 5% and 15%. This is because applicants with lower credit are considered a higher risk by sureties.

If you’d like to get an estimate of the cost of your bond, try our surety bond cost calculator below!

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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

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Surety Bond Amount ($)

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For even more detailed information, you can head to our surety bond cost page.

How to Get a Surety Bond in Mississippi

To get started with your bond application, follow the instructions given below.

License bond application

If you need to obtain a license bond, complete the online bond application, and we will contact you with a free and precise quote on your bond. Processing times for these applications are short, so you can expect to hear from us soon.

Contract Bond Application

If you need a contract bond, fill out the online application based on the contract for which you need to get bonded. We will contact you shortly with further details about getting bonded.

If you have any questions about the bonding requirements in the state or need assistance with your application, call us at 866.450.3412 to receive assistance from one of our professionals!

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.