Virginia Surety Bonds

Virginia Surety Bonds Overview

A number of Virginia state agencies require applicants for a business license to obtain a bond. Similarly, contractors in the state usually also need to get bonded in order to perform work.

Why do I need to get bonded?

The bond agreement guarantees your compliance with state laws in performing work as a licensed business. For contractors, the bond agreement guarantees their performance on any contracts they have. If you violate the agreement, it also works as form of financial security and provides compensation to anyone harmed by such a violation.

For a thorough explanation of how bonds work, see our 'What is a surety bond' page!

To apply for your Virginia surety bond right away, take a look at the table below to find the right bond. Just click the ‘Apply’ button and proceed to your application form. As soon as we process your application, we will contact you.

If you haven’t been bonded before, or would like to read more about surety bonds first, continue to the sections under the table. There you can learn more about the various surety bonds in Virginia you can obtain, how much they cost, and how to get bonded.

Types of Surety Bonds in Virginia

When getting licensed in Virginia, many businesses will be required to obtain a license and permit bond. In order to participate in construction projects, contractors will often need to obtain contract bonds. Court bonds are also available to those of our applicants who have been ordered by a court in the state to get bonded.

Review the sections below for particular information on all of these different types of bonds.

License & Permit Bonds

Many Virginia businesses will be required to post a license bond when they apply for their business license. These bonds are part of every state’s rules and regulations regarding business licensing.

License bonds are put in place in order to protect both the state and the public, as well as individuals. They do so by securing financial compensation by a surety, which is available in cases of fraud, malpractice, and other instances in which businesses do not comply with state regulations for their license. In other words, these bonds guarantee that businesses will perform according to regulations, industry standards, and best practices.

Among the most popular license bonds in the state are the auto dealer bond and freight broker bond. Many other types of license bonds are also required in the state, and are available if you'd like to obtain them.

Contract Bonds

When contractors become licensed and bonded they can begin working on construction projects in the state. Often these projects, especially public projects, will require contractors to obtain the necessary contract bonds. These bonds protect the bond’s principals, which can be the state or private owners, by guaranteeing that contractors will perform in accordance to state regulations as well as contract conditions.

So, in order to bid on such projects, work on them, or perform maintenance work, contractors are often required to obtain bid bonds, performance bonds, or payments bonds, to name a few.

Court Bonds

There are also instances in which individuals may be requested by a court to obtain a surety bond. These bonds are called court bonds, and are required in one of the following cases:

When an individual in Virginia wants to appeal a court judgment, they may be required by the appellate court to obtain a supersedeas (appeal) bond before the appeal can proceed. Alternatively, an individual in Virginia who is about to become a fiduciary, or guardian of someone’s assets or property, may be required by a probate court to obtain a fiduciary or guardianship bond.

If you have any further questions about the different types of Virginia surety bonds, call us at 866.450.3412. Our experts are here to respond to your questions and provide advice and guidance.

Surety Bond Cost in Virginia

To obtain a bond, you will need to pay a premium. This is a percentage of the total amount of the particular bond you are applying for.

A bond’s amount is its penal sum – the amount of its coverage or compensation which can be offered to obligees. All bonds have different amounts, which are fixed either by state regulations or on a federal level.

How is the bond premium determined?

When determining the premium, sureties will consider an applicant’s personal credit score as one of the main factors to base their decision on. Personal credit score is considered a good indicator of how financially stable applicants are. Sureties will usually also take into account a number of other factors, such as:

• Financial statements
• An applicant’s industry experience
• An applicant’s fixed and liquid assets
• Other financial indicators

Those applicants whose credit score is high are offered so-called standard market rates by sureties. These rates are usually between 1%-4% of the total amount of the bond. Keep in mind that the exact amount depends on the type of bond that you want to obtain.

But there are also those applicants who have a low or even bad credit score. Premiums for such applicants are between 5%-15% of the total bond amount. Learn more about getting a bond with a low credit score from our Bad Credit Surety Bond Program page!

If you’re wondering how much your surety bond may cost, try our surety bond cost calculator below. To learn more about bond premium, our surety bond cost page is a great source of additional information on the topic.

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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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How to Get Bonded in Virginia

To apply for your bond, just read through the instructions below, pick the right form, fill it in and submit it. We will then review your application and contact you within a short amount of time with your free quote.

License bond application

Apply online here if you require a license and permit bond. These bonds usually take only a short time to review, so you can expect to hear from us soon after you submit your application.

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

Depending on the type of contract bond you are applying for, complete the online application. After we review your application, we will contact you with more information about the bonding process.

call us at 866.450.3412 if you need any help with your application. Our professionals can guide you through the application process and respond to any questions you may have concerning the bonding process. We will be happy to help you!

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.