South Carolina Service Contracts Bond Overview
- Purpose: To ensure service contract providers follow state laws and honor their contracts
- Who Needs It: Most service contract providers doing business in South Carolina
- Regulating Body: The South Carolina Department of Insurance
- Bond Amount: $25,000–$100,000, based on the total dollar amount of contracts
- Minimum Price: $250, credit-based
What Is a South Carolina Service Contracts Bond?
A South Carolina service contracts bond protects consumers if a provider fails to fulfill its contractual obligations.
The SC Department of Insurance (DOI) requires you to file a form of financial security, like a surety bond, to register as a service contract provider.
Bond Coverage Requirements for Service Contract Providers
Your bond must equal at least 5% of the total amount received for all active service contracts, minus claims paid, with a minimum of $25,000.
You can also submit cash, a letter of credit or another form of approved security instead of a bond. However, a surety bond is typically the most affordable option.
How Much Do Service Contract Bonds Cost in South Carolina?
South Carolina service contract provider bonds start at $250, or 1% of the bond amount. Your exact rate will depend on your coverage and credit score. Apply now for a free quote!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a South Carolina Service Contracts Bond Work?
When you purchase this bond, you enter into a three-party agreement.
| Bond Party | Description |
|---|---|
| Principal | The service contract provider filing the bond |
| Obligee | The South Carolina Department of Insurance requiring the bond |
| Surety | The issuing surety provider |
If you break state law, harmed parties can file bond claims. The surety will pay any valid claims up to your full bond amount. You’ll then be responsible for reimbursement.
How Do I Get Bonded?
Once you know how much coverage you need, you can get a free quote within one business day! Just fill out the form on this page. After payment, we’ll ship the physical bond form directly to you. Be sure to file it with the DOI.
How Fast Can I Get My Bond?
If you need your bond ASAP, select overnight shipping at checkout. We also offer two- and three-day shipping.
How Do I Renew My Bond?
South Carolina service contract provider bonds expire annually on the issue date. We’ll send you reminders starting 90 days before renewal. After payment, you’ll need to file a continuation certificate with the DOI.
How Do I Update My Bond Information?
If you need to update anything on your bond, email [email protected]. We’ll issue a bond rider, if possible, to amend your form.
How to Become a Service Contract Provider in South Carolina
South Carolina service contract providers are not required to have an in-state business location. However, you still need to register with the Department of Insurance. Follow these four steps:
- Register your business with the Secretary of State.
- Purchase a surety bond in the required amount.
- Complete the application on NIPR and pay the $200 fee.
- Email additional documents, including your surety bond, to [email protected].
The renewal window is July 2 to September 30 annually. Renew online via NIPR and send any additional renewal documents to the same email address.
