New Mexico Service Contract Provider Bond Guide
If your company offers service contracts or warranties to consumers in New Mexico, you’ll likely need this bond.
Bond Overview
- Purpose: To ensure service contract providers meet state requirements and uphold contracts
- Who Needs It: Companies offering service contracts to consumers
- Regulating Body: The New Mexico Superintendent of Insurance
- Required Coverage: $50,000–$100,00
- Premium Rate: 1–10%, credit-based
What Is a New Mexico Service Contract Provider Bond?
New Mexico service contract provider bonds ensure that providers are compliant with state regulations and fulfill their consumer contracts as promised.
To register as a New Mexico service contract provider, you need to file a $50,000 financial security via a surety bond, cash, letter of credit, or securities.
Or—if your contracts will cover motor vehicles or plumbing, mechanical, or electrical systems—you’ll need a $100,000 bond.
How Much Do Service Contract Provider Bonds Cost in New Mexico?
Service contract provider bond premiums are typically $500–$5,000 for $50,000 coverage in New Mexico. If you need $100,000 coverage, you can expect to pay $1,000–$10,000 based on credit score.
Apply to get your free, no-obligation quote today.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a New Mexico Service Contract Provider Bond Work?
This bond creates a legally-binding financial contract between these three parties:
- Principal: The service contract provider filing the bond
- Obligee: The New Mexico Superintendent of Insurance requiring the bond
- Surety: The provider issuing the bond
If a service contract holder is harmed by a provider, they can file a claim on the bond for reimbursement.
The surety will validate and pay claims up to the full bond amount. Then, the principal is responsible for repaying the surety in full.
How Do I Get a Service Contract Provider Bond in New Mexico?
SuretyBonds.com provides the fastest and easiest way to get a New Mexico service contract provider bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
We’ll mail you the bond via your preferred shipping method. Be sure to file the bond with the Office of the Superintendent of Insurance (OSI) as instructed.
How Do I Renew My Bond?
These bonds expire annually. To renew your service contract provider bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
