Popular Surety Bonds in Seattle, Washington
Overview of Seattle Surety Bonds
To start a business in Seattle or to obtain a professional license, you may be required to get a license bond. Such bonds are typically required of businesses such as auto dealers, contractors, mortgage and freight brokers, but are often also needed by sellers of travel, or wholesale dealers of tobacco or alcohol.
A particular example for Seattle would be side sewer contractors who need to obtain a $30,000 bond before they get registered with the Seattle Department of Construction & Inspections.
Residential sellers in Seattle also need to submit a bond to the Director of Finance and Administrative Services of The City of Seattle when applying for a license. The amount of the bond is determined by the Director for each applicant individually.
Once licensed, contractors who wish to perform work on federal or state construction projects will usually be asked to obtain contract bonds in order to bid on such projects or begin performing work.
Thirdly, court bonds may also be required in Seattle by certain courts if you’re appealing a court judgment or you have been appointed as someone’s fiduciary.
All of these bonds serve as a guarantee that the bonded persons will comply with local regulations, such as the Seattle Municipal Code, and perform business in an honest way. If this is not the case, and the bonded person or business violate such laws, thereby causing losses or damages to the public or state, a bond claim may be filed. In such cases, the surety backing the bond may extend compensation to any harmed parties, up to the full bonding amount.
New to surety bonds? See our ‘What is a surety bond’ guide for a full explanation of why bonds are required and how they work!
See the sections below for more information regarding the cost of your bond, getting a bond with bad credit, what bond claims are, and how to apply for a bond.
Do you have any questions about the bonding requirements in Seattle? Call us at (866)-450-3412 anytime!
Surety Bond Cost
Your surety bond's cost is a percentage of your bond’s full amount. For example, the Seattle registered side sewer contractor bond is $30,000, and the cost of obtaining this bond would be a fraction of that full amount.
The exact percentage depends on a number of personal financial indicators of the applicant, among which credit score is the most important. Other information that is taken into account by sureties are an applicant’s financial statements, liquidity, personal assets, and more.
Applicants with high scores can typically expect to get low rates, while applicants with lower scores will see a higher rate. For example, for the above bond, an applicant with a FICO score of 700 or above could expect to see a rate between .75% and 1.5% of the full bond amount. This would be mean a bond cost between $225 and $450.
Rates on bonds slightly vary depending on the type of bond as well. To get a free and precise quote on your bond, just submit a surety bond application form and we will contact you with your quote.
Bonds With Bad Credit
Some sureties may turn down applicants who have lower score but with us there is no such issue!
Thanks to our Bad Credit Program even applicants who have a very low or nonexistent credit score can get bonded just as easily as applicants with higher scores. Rates under this program are slightly higher, though, due to the perceived increased risk in issuing such bonds. But by improving your bond score and other personal financials, you can expect to get increasingly better rates with each renewal of your bond.
See the program page for more information, and to request a bond quote!
Surety Bond Claims
Bond claims arise out of the violation of the conditions of the bond on behalf of the bonded party - the bond principal. For example, the under the Seattle Municipal Code (SMC) Chapter 6.260, bonded residential sellers must comply with the General provisions of the Code, as specified in 6.202. The conditions of the bond requirement are further specified in 6.202.400 - Bond - Conditions.
Under this chapter, bonded businesses such as residential sellers must perform business in an honest manner, comply with any licensing ordinance, honor any warranties or guarantees they have made, comply with consumer protection statutes and ordinances, as well as pay any fines or penalties they owe City in full.
If the bonded person violates any of these conditions, under the SMC, a claim can be made against their bond to request compensation for any losses or damages that arise out of such a violation. When a claim is filed, the surety compensates claimants up to the full bond amount. In return, the bond principal must then repay the surety for any such compensation in full.
For this reason, bond claims are best avoided, as they can be costly and time-consuming.
Apply for Your Bond Now!
Start your bond application by completing our bond form.
We will provide you with a free quote on your bond along with additional details about finalizing your application.
Your bond will be issued within two working days, and we will immediately send it your way via standard mail and e-mail.
If you have any additional questions about getting bonded in Seattle, call us at (866)-450-3412 to receive further information!