Vermont Surety Bond Overview
Many owners looking to get their businesses licensed in the state of Vermont are required to post a surety bond as part of the application process. The Vermont surety bonds in these cases will serve as a guarantee that applicants for a license or permit will comply with their obligations and the respective laws and regulations.
Contractors who plan to perform on a construction project within the boundaries of the state also need to get bonded in order to further proceed with their work. In this case, the contract surety bond will guarantee the contractor’s compliance with the specific agreement.
Court bonds are another type of bond you might need in the state of Vermont. These types of bonds serve different purposes. For example, an appeal bond is designed to discourage people from appealing judgments without a cause, while a fiduciary bond is required when someone is appointed guardian to another party’s funds.
Already know which Vermont surety bond you need? You can locate it in the table below and apply directly, thanks to our straightforward online application process. For any questions that may arise, our surety bonds agents are always ready to help at 866.450.3412.
Why do I need a bond?
All Vermont surety bonds are contractual agreements between three parties: the obligee (the state or institution that requires the bond), the principal (the entity required to post a bond) and the surety (the company that issues the surety bond).
The main purpose of the surety bond is to guarantee that the principal complies with the laws and regulations of the state of Vermont and to serve as a legal protection to the state and its public. In case of violation of the surety bond agreement, a claim against the bond may arise.
If you want to learn more about the surety bond and the bonding process, our What is a surety bond guide is a great place to start.
Still not sure what surety bond you will need? Check the table below to find the bond that you’re looking for and follow the application link!
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|
|Investment Advisor (Blue Sky) Bond||Department of Financial Regulation||Investment Advisor Bond||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Commisioner of Banking, Insurance, Securities and||Mortgage Broker||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Commissioner of Banking & Insurance||Mortgage Lender||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Commissioner of Banking & Insurance||Loan Servicer||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||VT DOT - Agency of Transportation||Motor Vehicle Dealer||Apply Now|
|Professional Licenses (All Other) Bond||Town of Highgate||Town of Highgate, VT Pawn Shop Bond||Apply Now|
|Alcohol (All Others) Bond||Vermont Dept of Liquor Control||Agent to Sell Spirituous Liquors Bond||Apply Now|
|Sales, Use & Consumer Tax Bond||State of Vermont Dept Taxes||BOND TO STATE OF VERMONT||Apply Now|
Types of Vermont surety bonds
There are three main categories of surety bonds you may be required to post in Vermont:
- License and permit bonds - a requirement for many businesses when they apply for a business license.
- Construction bonds - frequently required for work on public construction projects and some private ones as well.
- Court bonds - a Vermont court may order you to obtain one of these under certain circumstances
Bryant Surety Bonds has expertise in all three categories of surety bonds. Read further to learn more about each one of them.
Vermont License and Permit Bonds
This is the most popular category of surety bonds, often referred to as commercial bonds or license bonds. License bonds are required from a number of businesses which wish to obtain a license in Vermont.
License bonds enable the state to ensure that businesses comply with the regulations applicable to their trade. Failure to do so can result in a claim against the bond. A successful claim can be very costly, so it’s always a good idea to minimize your risk of a claim. Some of the most frequently posted surety bonds are Vermont auto dealer bonds, freight broker bonds, and mortgage broker bonds.
Some of the most frequently posted surety bonds are Vermont auto dealer bonds, freight broker bonds, and mortgage broker bonds.
Vermont Contract Bonds
Contract bonds are usually a requirement for contractors who wish to take on a public construction project, although some private projects also require them. There are several types of contract bonds, with each serving a different purpose. Among the popular ones are bid bonds, which may be required for a project during the bidding process, and performance and payment bonds required when the project is awarded.
The main goal of all Vermont contract bonds, however, remains the same - to protect the project owner from breach of contract or contractor default. They guarantee that the contractor will comply with the various responsibilities they have agreed upon when performing their work.
Vermont Court Bonds
Court bonds may be required in different cases. When you are appointed as a fiduciary of another person’s assets or property - you may need a fiduciary bond. Similarly, when you want to appeal a court judgement and take it to a higher instance, you may need to obtain an appeal bond or supersedeas bond.
If you still have any questions about the types of bonds or need more information about the specific bond you need, call us at 866.450.3412!
Surety Bond Cost in Vermont
The cost of the various types of Vermont surety bonds is estimated easily. The actual amount you will be paying on a regular basis, also known as premium, is a percentage of the total amount of the bond.
The total bond amount is in fact the maximum penalty sum listed on the bond or the compensation to be covered in case of a claim. The specific percentage that determines the premium is estimated by the surety, based on several financial factors.
What Determines Your Bond Premium?
The bond premium is calculated after the surety company completes a thorough evaluation of the applicant, which includes a credit report check. Your personal credit score is the most important factor for your bond premium estimation. Among some other factors that surety underwriters take into account are the following:
- Personal financial statements
- Business financial statements
- Industry experience
Applicants with high credit score typically pay premiums of 1% - 4% of the total bond amount. For those with lower credit score the rates usually rise to 10% - 15% of the total amount, because of the higher risk they present to the surety company. Thanks to Bryant Surety Bonds’ Bad Credit Program, applicants with low credit score can still get their Vermont surety bond at the lowest available rates.
Want to get an idea of how much your specific bond will cost? You can use our surety bond calculator to get an estimate on your premium. Call our agents at 866.450.3412 to learn more about how you can reduce your price.
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How to Get a Vermont Surety Bond
To obtain your surety bond you have to submit an online application, either for a license bond or for a contract bond.
The application process is quick and easy, and we will contact you shortly with a free, no-obligation bond quote. When the underwriting process is over, we will send you the original bond by mail, and you can always request copies by fax or email.
Having trouble with your application? Don’t hesitate to call us at 866.450.3412. We’ll be more than happy to help!
If you wish to learn more about surety bonds you can check our What is a Surety Bond? page