Delaware Surety Bond Types
The exact purpose of a Delaware surety bond depends on the bond’s specific type and how it functions, as different bonding requirements change how each bond works. Simply put, bonds provide protection-either for businesses, consumers, or government entities-by ensuring financial security. While securing a surety bond in Delaware might seem complicated or confusing at first, a little research could go a long way in protecting your investments. Understanding the bonding process-as well as the legal requirements for your industry-can help make the process go much more smoothly-and we’re here to help.
Why do you need a surety bond in Delaware?
Government entities require individuals or businesses to become bonded in order to help prevent unethical business practices. For example, contractors and telemarketers are two major professions in Delaware that must fulfill bonding requirements to prevent potential abuses of power, such as taking advantage of their customers. People appreciate working with with bonded individuals and businesses because they know that a surety bond protects their financial investments. This provides them with the confidence to work with you now and in the future.
How much do Delaware surety bonds cost?
Delaware surety bond rates and premiums fluctuate depending on a number of variables, such as the type of bond being issued and the principal’s financial strength. However, surety bonds generally cost between 1 and 3 percent of the bond’s total value. So if the bond amount is $10,000, an average principal with a good credit report would pay a $100 to $300 fee to secure the bond. If the principal’s financial history has negative marks, the bond will cost more because the surety takes a greater risk in endorsing the principal. A poor credit history will require the principal to work with a surety bond agency like Surety Bonds.com that issues non-standard-or bad credit bonds-to high-risk clients.
How do you get a bond in Delaware?
If you already know the specific Delaware surety bond that you need, try browsing our collection below to see if we currently have the form you’re looking for on file. If you don’t see the exact one you need, try contacting one of our friendly surety bond specialists-they can help you find the form you need.
If you don’t know what type of Delaware surety bond will best serve you, try checking if there are bonding rules or regulations established for your industry by either the state or local government. Many professionals, such as mortgage brokers, are required to secure a license bond before being issued a business license in Delaware. Regulations about Delaware license bonds are usually easy to find on the state’s department of licensing website. For other bond types, try browsing our site to see what sort of information we offer on other areas of bonding. And of course feel free to contact a friendly surety bond specialist if you need any help along the way.
Whether you’re required to secure a surety bond or just want some extra financial protection, applying for a bond is a quick and easy process. Filling in the required information online only takes a few minutes, and and turnaround time varies by bond type.