Which Surety Bonds in Michigan Do You Need?
There are three types of Michigan Surety Bonds that can be required of you:
- License bonds needed for many professions such as auto dealers and contractors to operate legally.
- Contract bonds for public construction projects such as Bid Bond and Performance and Payment Bonds
- Court bonds required by the courts for various purposes such as Fiduciary and Appeal bonds with exception to Bail Bonds.
Getting License and Permit Bonds
There are hundreds of Michigan Surety Bonds required by the state, cities, counties and so on. Simply apply online and be specific as you can when applying for this type of bond so that we may quote your bond request as quickly and efficiently as possible. If you do not find your bond on the drop down, you may select the General Business License and provide additional information in the space provided.
Getting Contract Bonds for Public Jobs
Contract bonds such as bid and performance bonds are needed to work on public construction projects. However, these are usually required by cities or municipalities as opposed to the state of Michigan.
Getting Court Bonds in Michigan
“Court bond” is a general term for a variety of surety bonds which are often needed in court proceedings to guarantee protection from financial loss to obligees. The two most common scenarios requiring a court bond are the appeal of a court’s judgment by a litigant, or the appointment of a fiduciary by a probate court. The former requires litigants to obtain an appeal bond, the latter requires fiduciaries to obtain a fiduciary bond.
What Do Michigan Surety Bonds Cost?
Surety bond costs vary drastically depending on the bond amount that you need and your rate (which is the percentage of the full bond amount you must pay). In most cases personal credit has a major bearing on the rate provided by the surety company. Surety companies use this because obtaining a surety bond is much like getting a bank loan. You are asking the surety company to financially back you and guarantee that you will perform according to rules and regulation. In the event that you do not and a claim is made to your bond – you will indemnify the surety company.
Can You Get Bonded with Bad Credit?
It’s possible to get a surety bond with bad credit, but it will depend on the bond type you need and how severe your credit issues are. You can get approved for most license and permit bonds regardless of your credit situation. However, it is more difficult to get contract bonds with bad credit.