North Carolina Surety Bonds

City Requirements

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!

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!

+ -

+ =

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

State Requiring the Bond Select Your StateAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWashington D.C.West VirginiaWisconsinWyoming

Surety Bond Amount ($)

Select Your Credit Score Please select Above 700 650 - 699 600 - 649 550 - 599 549 and under

Calculate

* This form is for a rough estimate only.

Send the estimate to my email

Tell us where to send you your FREE estimate

SEND ME MY ESTIMATE!

We'll never share your information with third parties

Thank you for your request!

The ballpark estimate on your premium is: $100 - $167

We've sent a copy of your estimate on your email as well.

Want an exact quote? Simply fill out our online application It's fast and 100% free!

Get a free exact quote Get another estimate

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.

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.