Montana Surety Bond Overview
Starting a business in Montana often requires that you post a surety bond, so that you can obtain your license or be in compliance with state laws. Surety bonds safeguard the interests of the state and the general public by providing protection against fraudulent activities committed by individuals and companies. Similarly, to do construction work on a public project, you will likely also need to get bonded.
Why do I need a bond?
The surety bond agreement guarantees that the bonded party will comply with their legal obligations and responsibilities - such as to perform work according to certain standards or contractual conditions. If the bonded party violates these conditions, a claim can be made against their bond to secure compensation to anyone who is harmed due to this violation.
For an in-depth explanation of how bonds work, see our 'What is a surety bond' guide!
Already know what kind of surety bond you need? Find it in the table below and follow the application link to request your free quote. Keep reading the sections below for more information about the different types of bonds or, if you have any questions, don’t hesitate to call us at (866)-450-3412!
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".
|Contractor License Performance & Payment (Local) Bond||City of Whitefish Public Works Dept.||(Whitefish, MT) Public Works Contractor License Bo||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Division of Banking and Financial Institutions||Mortgage Broker Licensee Bond||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Division of Banking and Financial Institutions||Mortgage Lender||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Division of Banking and Financial Institutions||Mortgage Lender License Bond||Apply Now|
|Title Insurance Agents & Escrow Officers Bond||MT, Division of Banking and Finacial Instatutions||Escrow Business Bond||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Title and Registration Bureau||Motor Vehicle Dealer||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Title and Registration Bureau||Motor Vehicle Dealer||Apply Now|
|Professional Licenses (All Other) Bond||Dept of Labor: Board of Private Security||Process Server/Levy Officer||Apply Now|
|Professional Licenses (All Other) Bond||Montana Dept of Transportation Motor Fuels Section||Special Fuel User (Contractor) Bond||Apply Now|
Types of Montana Surety Bonds
The three main types of surety bonds are license and permit bonds, construction bonds, and court bonds.
- If you want to apply for a business license, you will often be asked to provide a license and permit bond.
- In case you are a construction contractor who wants to participate in public or private construction projects, you might be required to get construction bonds.
- You may need to obtain court bonds in certain situations, when required by a Montana court.
License & Permit Bonds
A large array of Montana businesses must get licensed, to comply with state, local or city rules. In many cases, a license and permit bond is required during the licensing.
The purpose of this bond is to guarantee that your business will follow all relevant rules governing your field. This way, it protects the general public from businesses that commit fraud or misrepresentation. Breaking your obligations under the bond can lead to a claim. If the claim is proven, you will be liable to reimburse affected parties up to the penal sum of your bond.
The most common Montana license and permit bonds include:
Montana auto dealer bond
- Obligee: Montana Department of Justice’s Motor Vehicle Commission
- Bond amount: $50,000
Montana contractor license bond
- Obligee: Montana Department of Labor and Industry
- Bond amount: Set on a case-by-case basis
Freight broker bond
- Obligee: Federal Motor Carrier Safety Administration
- Bond amount: $75,000
- Expiration date: Coinciding with the licensing year