City Requirements
Charlotte
North Carolina Surety Bonds Overview
Obtaining a professional license in North Carolina often entails posting a surety bond as one of the major requirements in the process. Similarly, in order to perform on state or federal projects, NC contractors are typically also required to obtain a bond.
Why is a bond required?
Surety bond agreements guarantee that the party that obtains the bond (the bond principal) will comply with various conditions. For example, bonds for licensing purposes guarantee compliance with state laws governing the type of business. Bond for contracting purposes guarantee performance according to contract conditions and timely payments to subcontractors.
If the principal violates the agreement and causes harm or losses to the party that requires the bond (the bond obligee), a claim can be filed against the bond to secure financial compensation.
To find out more about how bonds work, see our ‘What is a surety bond’ guide!
Start your bond application by finding the bond you need in the following table.
If you need more information about bonds in North Carolina, see 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 |
Agricultural (Non-Livestock) Bond | NC Dept. of Agriculture and Consumer Serv. | Grain Dealer's Bond | Apply Now |
Contractor License (No P&P Language) Bond | NC Irrigation Contractors Licensing Board | Irrigation Contractor's License | Apply Now |
Contractor License (No P&P Language) Bond | Mecklenburg County Land Use & Environmental Servic | Land Use and Construction Bond | Apply Now |
Contractor License Performance & Payment (Local) Bond | City of Greensboro | Privilege License Bond | Apply Now |
Contractor License Performance & Payment (Local) Bond | Obligee info for this request was wrong | Contractor License Performance & Payment (Local) B | Apply Now |
Contractor License Performance & Payment (State) Bond | NC Manufactured Housing Board | Set-Up Contractor License | Apply Now |
Contractor License Performance & Payment (State) Bond | State of North Carolina, County of Wake | Home Warranty Bond | Apply Now |
Contractor License Performance & Payment (State) Bond | North Carolina Department of Insurance | Modular Building Set-Up Contractor License Bond | Apply Now |
Contractor License Performance & Payment (State) Bond | NC Landscape Contractors Board | Landscape Contractors' Licensing Compliance Bond | Apply Now |
Investment Advisor (Blue Sky) Bond | NC Secretary of State | Investment Advisor's | Apply Now |
Collection Agency Bond | Dept of Insurance | 2013-2014 New Domestic Collection Agency Bond | Apply Now |
Debt Consolidators Bond | Attorney General | Credit Repair License | Apply Now |
Professional Fund Raisers Bond | NC Sec. of State: Charitable Solicitation Section | Solicitors | Apply Now |
Insurance Adjusters Bond | North Carolina Dept of Insurance | Public Adjuster Insurance | Apply Now |
Insurance Agents/Brokers Bond | Commissioner of Insurance | Broker Insurance | Apply Now |
Mortgage Broker (1st & 2nd Mortgages) Bond | Commissioner of Banks | Mortgage Broker Surety | Apply Now |
Mortgage Broker (1st & 2nd Mortgages) Bond | Commissioner of Banks | Reverse Mortgage Bond | Apply Now |
Mortgage Broker (1st & 2nd Mortgages) Bond | North Carolina Commissioner of Banks | Mortgage Broker Bond | Apply Now |
Mortgage Lender/Banker (1st & 2nd Mort.) Bond | Commissioner of Banks | Mortgage Lender | Apply Now |
Mortgage Lender/Banker (1st & 2nd Mort.) Bond | Commissioner of Banks | Mortgage Lender | Apply Now |
Small Loan Companies Bond | North Carolina Secretary of State | Loan Broker | Apply Now |
Defective Title Bond | NC DMV Vehicle Title | Motor Vehicle Certificate of Title Indemnity Bond | Apply Now |
Auto & Mobile Home Dealers (New & Used) Bond | Division of Motor Vehicles - License & Theft Burea | Motor Vehicle Dealer | Apply Now |
Auto & Mobile Home Dealers (New & Used) Bond | Dept of Insurance Division of Motor Vehicle | Manufactured Housing Dealers | Apply Now |
Auto & Mobile Home Dealers (Used Only, No New) Bond | Division of Motor Vehicles - License & Theft Burea | Motor Vehicle Dealer | Apply Now |
Sport Permits Bond | Dept. of Crime Control & Public Safety, Alcohol La | Boxing & Mixed Martial Arts Promoter's Surety Bond | Apply Now |
Employment Agencies Bond | Department of Insurance | Professional Employer Organization | Apply Now |
Professional Licenses (All Other) Bond | NC Department of Crime Control & Public Safety | Professional Licenses (All Other) Bond | Apply Now |
Professional Licenses (All Other) Bond | NC Department of Crime Control & Public Safety | Precious Metals Dealer (CC&PS Form 7) | Apply Now |
Professional Licenses (All Other) Bond | State of North Carolina | Business Opportunity Surety Bond | Apply Now |
Professional Licenses (All Other) Bond | Attorney General | Prepaid Entertainment | Apply Now |
Professional Licenses (All Other) Bond | City of Asheville - Public Works Department | City of Asheville License Bond | Apply Now |
Professional Licenses (All Other) Bond | North Carolina Utilities Commission | Public Utility Franchise Bond | Apply Now |
Professional Licenses (All Other) Bond | NC Department of Public Safety | Precious Metal Dealer Bond | Apply Now |
Schools (All) Bond | State Board of Community College | Community College License Bond | Apply Now |
Schools (All) Bond | NC Division of Motor Vehicles | Commercial Driver Training School and Instructors | Apply Now |
Schools (All) Bond | Board of Barber Examiners | Barber School Guaranty Bond | Apply Now |
Schools (All) Bond | State Board of Community College | Cosmetic Art Examiners Guaranty | Apply Now |
Schools (All) Bond | North Carolina State Approving Agency | Private School Bond | Apply Now |
Cigar/Cigarette & Tobacco Tax Bond | North Carolina Dept. of Revenue | Tax Bond for Tobacco Products Other Than Cigarette | Apply Now |
Cigar/Cigarette & Tobacco Tax Bond | NORTH CAROLINA DEPT OF REV | Tax Bond for Cigarettes | Apply Now |
Fuel Tax (All Others, Sellers & Users) Bond | North Carolina Department of Revenue | Motor Fuels Tax Liability Bond | Apply Now |
Utility Deposit Bond | Duke Energy | Duke Energy | Apply Now |
Utility Deposit Bond | Progress Energy Carolinas, Inc. | Utility Deposit Bond | Apply Now |
Utility Deposit Bond | Kinston Public Services | Utility Guarantee Bond | Apply Now |
Utility Deposit Bond | Union Power Cooperative | Union Power Cooperative Bond | Apply Now |
Utility Deposit Bond | Dominion North Carolina Power | Utility Deposit Bond | Apply Now |
Utility Deposit Bond | Duke Energy Florida, Inc | Utility Deposit Bond | Apply Now |
Utility Deposit Bond | City of New Bern | In Lieu of Deposit Bond | Apply Now |
Utility Deposit Bond | Duke Energy Progress | (Duke Energy) Electric Service Bond | Apply Now |
Financial Guarantee (All Other) Bond | The North Carolina Community College System | GUARANTY | Apply Now |
Financial Guarantee (All Other) Bond | North Carolina Community College System | Guaranty | Apply Now |
Lottery Bond | North Carolina Lottery Commission | Education Lottery Bond | Apply Now |
Lottery Bond | North Carolina Lottery Commission | Education Lottery Bond | Apply Now |
Appraisal Management | North Carolina Appraisal Board | Appraisal Management Company Bond | Apply Now |
Types of Surety Bonds in North Carolina
Typically one of the following three main types of surety bonds is required in NC:
- If you are undergoing a professional licensing process, you might be asked to post a license and permit bond
- If you are a construction contractor bidding on public or private projects, you will likely be asked to post contract bonds
- More rarely, you might be required to obtain court bonds by a state court
License & Permit Bonds
When you are applying for a professional license with the state, local, or city authority that governs your trade, in many cases you are asked to post a license and permit bond. This is a prerequisite for obtaining the right to operate in your trade.
Just like in other states, North Carolina surety bonds serve an important function in guaranteeing the legal operation of businesses. Bonds safeguard the interests of the regulating authorities, and the general public.
You can think of your surety bond as an additional line of credit for your company. It guarantees you will follow applicable rules. If you transgress them, an affected party can make a claim on the bond. On proven claims, you might have to reimburse claimants up to maximum amount of the bond.
Contract Bonds
Construction contractors bidding on private and public construction projects need to obtain different types of contract bonds. Unlike license bonds, contract bonds are required in relation to a specific project only.
The purpose of contract bonds is to guarantee the proper and timely performance of contractors. They protect project owners from non-completion, or low-quality work.
The usual kinds of contract bonds include:
- Bid bonds
- Performance bonds
- Payment bonds
- Maintenance bonds
Court Bonds
A North Carolina state or local court, in specific cases, might ask you to obtain a court bond.
The typical situations in which you might have to get a court bond are:
- You can be asked to get a supersedeas bond, also known as an appeal bond, if you want to bring a case to an appellate court
- You are likely to be asked for a fiduciary bond if you have been assigned by a state probate court to act as a guardian of another person’s assets or property
Call us at 866.450.3412 if you have any questions whatsoever about these bonds!
How Much Does a Bond Cost in North Carolina?
It is important to differentiate between this amount and your actual bond cost. The bond amount is the highest possible reimbursement that affected parties can receive on proven claims.
Your surety bond cost, on the other hand, is only a fraction of this amount. It is referred to as the bond premium, and is a percentage of this full amount.
What determines my bond cost?
When you apply for your bond, your surety examines your personal and business financials, and determines the risk involved in getting you bonded. The stronger your overall finances are, the lower your bond premium is likely to be.
The most important factors that are examined are:
- Your personal credit score
- Business financials
- Assets and liquidity
- Professional experience
Applicants who have a high credit score and strong finances can expect to be offered a bond at between 1% and 4% of the bond amount.
Can applicants with low credit get bonded?
Applicants with a low score can also get bonded. Rates for such applicants are higher due to the perceived greater risk that surety assume when issuing bonds to them.
Typically bonds rates for low credit applicants range between 5%-15% of the total bond amount.
Find out more about getting a bond with a lower credit score through our Bad Credit Surety Bond Program page.
For an estimate of the cost of your bond, try our surety bond cost calculator below!
You can learn more about what influences bond cost and why on our detailed Surety Bond Cost page.
How to Get Bonded in North Carolina
To apply for a bond, you need to complete the right bond application and submit it to us. We’ll get in touch with you to provide you with a free quote and further information on completing the bonding process!
License bond application
To apply for a license bond, complete our simple online bond form.
Contract Bond Application
To apply for a contract bond, complete the online application depending on the bond type you need for your contract. We will contact you shortly with more information on your bond quote.
Our experts are here to help you out with your bond application. Call us at 866.450.3412 anytime.