Types of Surety Bonds in WA
Typically, one of these three main types of bonds are required in Washington:
- license and permit bonds
- contract bonds
- court bonds
License & Permit Bonds
Washington state requires many businesses to obtain a business license when opening a shop, dealership, or other establishment. To get licensed, many of these businesses must also obtain a license bond.
Whether or not your business must be bonded is determined by the state government, and the respective licensing agencies, such as the Department of Labor & Industries or the Department of Licensing.
The bond is a guarantee to your customers that your business is licensed and allowed to offer services or products to the public. It also guarantees that in performing business you will comply with state laws.
What is a surety bond?
A surety bond is a three-sided contractual agreement guaranteeing that a business or individual will fulfill their obligations under a contract and in accordance with business regulations. The three parties involved in the surety bond agreement are the obligee (the party requesting a surety bond), the principal (the party obtaining the bond) and the surety (the surety company backing the surety bond financially).
How Surety Bonds Work?
To get bonded, you need to pay only a small percentage of the bond amount, which is called a bond premium. This percentage is different for every applicant and it is based on different factors, such as the type of bond you need, your credit score, financial statements and more. To get a ballpark estimate of how much your bond might cost, contact our agent and well be able to help with that. Call 206-248-5615.
What Does a Bond Cost?
This is our most common question and unfortunately it's the one with the least straightforward answer. Though a commercial bond annual premium tends to fall between 1% and 14% of the bond size, this is a larger range and there can be exceptions. .
How To Get Bonded?
Are you new to Bonding? Learn the in’s and out’s of the bonding process as well as the five key pieces of information you will need to apply for your surety bond. This information will not just make the process smoother, but it can also help you reduce the cost of your surety bond. Contact our agent and well be able to help.