Washington Surety Bonds

Overview of Washington State Surety Bond Requirements

Surety bonds are often required in the state of Washington for businesses and individuals that apply for a license from the State Department of Licensing or other authorities. Contractors who wish to work on federal or state construction projects are also frequently required to get bonded.

Why do I have to get bonded?

Surety bonds are a guarantee that in doing business the bonded party will comply with the laws and regulations in the state. Such laws include the Revised Code of Washington (RCW) and the Washington Administrative Code (WAC). They are a typical licensing requirement for many businesses.

Contractors must also get bonded when performing work on federal, state, or even private projects above a certain contract amount. Bonds for contractors guarantee that they will perform in accordance with the conditions of the contract, and that they will pay their subcontractors.

In guaranteeing compliance, bonds also extend protection. If a bonded party violates the bond agreement and thereby causes harms or losses to the protected party, the surety will compensate such losses.

To learn more about how bonds work and why you need one, see our ‘What is a surety bond’ guide.

For more information about the types of bonds available in Washington, their cost, and how to get bonded, see below!

Types of Surety Bonds in WA

Typically, one of these three main types of bonds are required in Washington:

• license and permit bonds
• contract bonds
• court bonds

License & Permit Bonds

Washington state requires many businesses to obtain a business license when opening a shop, dealership, or other establishment. To get licensed, many of these businesses must also obtain a license bond.

Whether or not your business must be bonded is determined by the state government, and the respective licensing agencies, such as the Department of Labor & Industries or the Department of Licensing.

The bond is a guarantee to your customers that your business is licensed and allowed to offer services or products to the public. It also guarantees that in performing business you will comply with state laws.

Looking for a bond? The table below can help you find it. Want to know more about its cost? See the cost section further down.

Contract Bonds

Federal and state law require contractors in every state to obtain contract bonds before they commence work on certain construction projects, especially government or public projects. Contractors will often also be asked to obtain such bonds when working on private projects.

These bonds guarantee that contractors who have been awarded a contract will comply with the conditions of that contract, as well as adhere to professional standards and state regulations for contractors.

Title 39, Chapter 39.08 of the RCW specifies the conditions under which contractors in Washington must get bonded to perform work on state projects.

Types of contract bonds include performance and payment bonds, bid bonds, maintenance bonds, and a few others.

Court Bonds

When appealing a court ruling in Washington, an appellant may be required to obtain a court bond before they can appear in front of the appellate court. Similarly, when a someone is appointed a fiduciary, they often must obtain a fiduciary bond as a form of guarantee that they will care for the interests of the person they are representing.

Not sure what kind of bond you need or how to get yours? Call us at 866.450.3412 to speak to our surety bond professionals and get help with your application.

How Much Does a Surety Bond in Washington Cost?

Bond cost vs. bond amount

In order to get a Washington surety bond, you need to pay a surety bond premium. This premium, or bond cost is based on the total amount of the bond you must obtain, and is a percentage of that amount. This percentage is determined by the surety you apply with.

Which factors influence the bond cost?

Your personal credit score is the main factor determining your premium. Credit score is strongly relied upon by sureties when setting a bond rate, because it is considered accurate in predicting how financially reliable applicants are, and what the likelihood of a claim against their bond is.

Sureties also take into account a number of other factors, such as:

• Personal financial statements
• Business financial statements
• Applicant asset profile
• Industry experience

Based on your credit score and the above criteria, sureties determine your premium. Premiums for applicants with a high credit score, one of 700 FICO or more, range between 1%-3% of the total amount of the bond. This is called a standard market rate. Applicants with slightly lower scores are typically offered a quote upward of 3% but not as high as applicants with bad credit.

What’s the bond cost for applicants with bad credit?

Premiums for applicants with a lower credit score range between 5%-15% of the full bond amount. Yet, applicants in this category can improve their bond cost significantly over time by improving their credit score and other financials.

Get an estimate of your surety bond rate by using our surety bond cost calculator 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

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

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How to Get Bonded in Washington

Follow the bond application instructions that apply to the type of bond you require.

License bond application

To apply for a license bond in Washington state, complete our online surety bond form. Most applications for these bonds are processed quickly and we will soon contact you with a free quote on your bond.

Contract bond application

To apply for a contract bond, fill out the online application. We’ll soon contact you with more information about getting your contract bond.

If you want to clarify anything or need further assistance, 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.