Nevada Surety Bonds
The State of Nevada has many different surety bonding requirements for businesses and individuals across the state. Below we will outline how Nevada surety bonds work and who requires a bond.
How does a Nevada surety bond work?
A surety bond is a three-party agreement between; the business or person required to get the bond (Principal), the company issuing the bond (the Surety), and the entity that requires the bond (the Obligee).
The purpose of a Nevada surety bond is to protect different parties from damages resulting from the acts of the Principal. If the bondholder violates the terms of the bond, damaged parties can file a claim against the bond seeking financial compensation.
In the event of a successful claim, the bonding company will pay damages up to the total bond amount.
Most common Nevada surety bonds
There are a wide variety of surety bonds required in Nevada. These bonds fall into three primary categories:
- Contract Bonds: These bonds are needed for anyone that works on public construction projects.
- License Bonds: These bonds are required as part of the registration process for various professions.
- Court Bonds: These bonds are required for a variety of court proceedings.
Some of the most common types of bonds in the State of Nevada include:
Contractors Board License Bonds
Nevada contractor license bonds are required by the Nevada State Contractors Board for people that want to work on construction and other contracting projects.
Motor Vehicle Dealer Bonds
The Nevada Department of Motor Vehicles (DMV) requires surety bonds to ensure that car dealers and wholesalers conduct ethical business practices.
Collection Agency Bonds
The Nevada Department Of Business and Industry requires surety bonds to ensure collection agencies accurately report the accounts they collect.
Below are some other types of Nevada surety bonds:
- Sales Tax Bonds
- Mortgage Broker Bonds
- Notary Public Bonds
- Utility Deposit Bonds
- Loan Services Bonds
- Freight Broker Bonds
How much do Nevada surety bonds cost?
How much you need to pay for a Nevada surety bond depends on the total bond amount and your bond premium.
The required bond amount for Nevada surety bonds is set by the obligee. This is the maximum amount that the surety company is willing to pay if someone were to make a successful claim against the bond.
Below are the required amounts for some popular Nevada surety bonds:
- Motor Vehicle Dealer Bond: Varies
- Contractors Board License Bond: Varies
- Mortgage Broker Bond: Varies
- Notary Bond: $10,000
Your premium is the percentage of the required bond amount that you need to pay to get the bond. For example, a $10,000 bond with a 1% premium would cost $100 for you to obtain.
Premiums for surety bonds in Nevada normally range between 1% and 15%. Some bonds are riskier than others, leading the surety company to charge higher premiums to cover against any potential claims.
Depending on the bond, the surety company may review qualifications like your credit history, and industry experience when underwriting the bond. If you have bad credit or a poor financial history you can still get a bond but you may need to pay a slightly higher premium.
Fill out a secure online application below and our Nevada surety bonding experts will send you a free quote in 2-3 business days. We strive to find the best rates for your business. Save time and money by getting bonded by South Coast Surety today!
Please give us a call if you don’t see the bond you’re looking for or have any surety bonding questions – 800-361-1720. Or email email@example.com.