Rhode Island Surety Bond Types
Although Rhode Island may be the smallest state in America, its government offers some of the best protection available to businesses and consumers through surety bonds. Depending on which type it is, a surety bond protect can protect businesses, consumers or the government from fraudulent activities. Three parties take are necessary when a bond is issued: the principal, the obligee and the surety. The principal is the company who gets bonded, usually to ensure that he or she fulfills his or her duties appropriately. The obligee generally receives the principal’s services, and thus the bond usually protects consumers. They surety is an individual or company who bonds the principal, thus guaranteeing that he or she fulfill the contract.
Many different industries in Rhode Island require their businesses to get bonded. One industry that most people would probably never think requires bonding is businesses that work with fundraising and charities. Rhode Island requires individuals and companies that plan to fund-raise or sell goods on behalf of charities to secure a Bond of Professional Solicitor or Professional Fund Raising Counsel. This bond aims to keep the business from acting unethically while conducting business on behalf of charities.The general treasurer of Rhode Island acts as the obligee for this bond.
Surety Bond Definitions in Rhode Island
This bond is usually issued in the amount of $10,000. Specialty surety bond companies generally issue these bonds at rates between one and four percent, depending on the company’s credit score and other factors. Applying for a professional solicitor or professional fund raising counsel bond is quick and easy. Many reliable surety bond companies can be found online. Filling out the forms takes only a few minutes, and you can get a quote back in just a few days. If you’re not sure what you need to do there are plenty of helpful surety bond specialists who can help you.
Be sure to check both state and local rules and regulations for bonding in your specific industry. Obtaining a surety bond is usually required beforea company can be issued a legal business license. Although most industries require businesses to obtain surety bonds, many business owners get bonded on their own as a show of good faith. Bonded businesses attract more customers because they know a company that has gone to the trouble of securing a surety bond is trustworthy and conducts good business ethics.