South Carolina Surety Bonds

South Carolina Surety Bonds Overview

Individuals in South Carolina who want to start a business will usually need to get licensed. During the licensing process, many applicants will also need to post a surety bond. Similarly, contractors who wish to perform on state, federal, or private projects also need to post a surety bond first.

Why do I need to post a bond?

Regardless of the type of surety bond, their purpose is always the same - to guarantee that the bonded party will comply with certain obligations and responsibilities. If the bonded individual or business violates their bond agreement, affected parties can take action against the bond by filing a claim. The surety then investigates the matter and may extend compensation to claimants.

Keep reading if you want to learn more about surety bonds in the state. If you’re still new to the concept of surety bonds, you can find out more about them on our 'What is a surety bond' page.

If you're ready to apply for a bond - find the bond you need in the table below, and follow the link.

Types of Surety Bonds in South Carolina

Generally, surety bonds are divided into the following three categories:

• License bonds - if you are registering your business in South Carolina, you may be required to post a license bond to guarantee that you comply with local or state regulations. License bonds also protect your customers in case you commit fraud.
• Construction bonds - if you’re a contractor working on a project in the state, oftentimes you will have to post several types of construction bonds. In a few cases, private projects may call for them too.
• Court bonds - a South Carolina court may order you to get a court bond under several different circumstances.

License Bonds

License bonds guarantee compliance with regulations pertaining to your business. A license bond is an integral part of the licensing process, and usually, your license is not valid without the bond. In most cases, the surety bond needs to be renewed together with the business license on an annual or bi-annual basis.

One business type that almost always requires a bond is auto dealerships, and South Carolina is no exception. Licensed dealers need to post a auto dealer bond, which protects car buyers in case they buy a defective car or are defrauded in some way.

Other frequently-encountered surety bonds are the freight broker bond, the contractor license bond, and the mortgage broker bond.

Construction Bonds

This is an important category of surety bonds for all construction contracts. Large public projects often require construction bonds, as a way to safeguard the state’s investment from contractor default or breach of contract. Different types of construction bonds protect against different scenarios.

Performance bonds, for example, can be triggered in case of contractor default, or any breach of the terms of the contract. Payment bonds offer protection in case a contractor doesn’t pay their subcontractors, laborers, or suppliers. A bid bond may be necessary when placing a bid on the project, to make sure that the contract will be completed under the conditions you described in the bid, if you are awarded the contract.

Court Bonds

This is the smallest of the three categories of bonds. A scenario that may warrant a court bond is if you are appealing a court judgement made by a state court. If a court has appointed you someone’s fiduciary or guardian, another type of court bond may be necessary.

If you have any more questions about either bond category, call our surety bonds experts at 866.450.3412.

Surety Bond Cost in South Carolina

To get a quick estimate of your bond price, try our surety bond price calculator below. To better understand exactly how pricing works, see the explanation 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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Each surety bond has a total bond amount set by the state or local government. The total bond amount is the sum up to which a business may be made liable in case they violate the bond agreement. Let’s take the auto dealer bond as an example. If a South Carolina auto dealer commits fraud, the $30,000 sum on their dealer bond means that they may have to compensate a claimant up to $30,000 in case of a valid claim.

However, to obtain a surety bond, the principal of the bond pays only a bond premium, which is a certain percentage of the bond amount. The surety underwriter guarantees that the principal is capable of paying off any potential claim. It’s important to understand that the surety assumes a risk, because even though you are eventually responsible for all claims, the surety is also legally responsible for your actions and may need to initially step in pay off your claim.

How is the bond premium determined?

If you have good credit, and do not pose a serious risk to the surety’s finances, you can expect premiums as low as 1% and up to 4% of the bond amount. This risk is mostly measured through an evaluation of your personal credit score. Other factors that can also be considered are:

• Personal and business financial statements
• Liquid assets
• Resume

As you can guess, a low credit score will cause the surety to consider you a high-risk applicant. This will likely increase premiums to anywhere between 5% and 15% of the total bond amount. If you have a low score but want to apply for a bond, see our bad credit program page for more information.

For even more detailed information on how bond cost is determined by sureties, see our surety bond cost page.

How to Get Bonded in South Carolina

Ready to apply for your bond? Follow the relevant application instructions below.

License bond application

To apply for a license bond, use our online application tool which will take you through the whole process in just a few minutes. You start by submitting a few basic details about your company, after which we will contact you with a bond quote and further details about finalizing the application process.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

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Contract bond application

To apply for a contract bond, complete the online application based on the bond type you require. We will contact you as soon as we have reviewed and processed it.

For any questions about getting bonded or the requirements in South Carolina, give us a call at 866.450.3412!

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.