Georgia Surety Bonds
Georgia surety bonds are needed by companies and residents of the state. Additionally, out of state companies and others may also need a surety bond in Georgia. These bonds are typically required to get a state license. Examples of license types which need surety bonds are car dealers and mortgage brokers. We’ll discuss some of these in detail below.
How do I apply for a surety bond in Georgia?
Applying for your bond is easy. Choose your bond type from the drop down list below then click “Get Your Bond Quote”.
Most bonds are approved as soon as your application is received.
Who needs Georgia Surety Bonds?
Other than the two examples we mentioned in the first paragraph, there are many other bond types needed in Georgia. They’re usually required by individual departments at the state level but can also be required by private companies. Those bonds which the state requires are generally referred to as license bonds and those required by private companies generally fall into a miscellaneous or performance bond category. Let’s discuss the different types of surety bonds in Georgia below.
What’s a Georgia License Bond?
Georgia license bonds are those which the state requires to obtain a license. Certain state departments often ask for a surety bond when you’re applying for a business license. But why? Bonds are used to protect consumers of your products or clients of your business. In most cases, license bonds offer a form of financial protection in case you violate a state statute or regulation. A good example of this would be if you sell a car to one person, collect their money, and then resell the car to another person. Depending on the circumstances, the first person in this example may be able to collect money from the surety bond. This is because ripping of a consumer is most likely a violation of a state regulation.
What’s a Performance Bond in Georgia?
Georgia performance bonds are different from the license bonds mentioned above. These bond types usually guarantee the performance of a contract or other obligation. You’ll see city and state governments use them on construction projects. In fact, state law requires them when a construction contract exceeds a certain price. They’re required in order to protect the tax payer dollars used to fund the project. Can you imagine if a contractor didn’t perform a project when they were already paid $1 million to do so? How would a local government be able to fund the completion of that project if the performance bond didn’t guarantee funds for the completion of the project?
How much do surety bonds cost in Georgia?
In most cases, your surety bond cost will range in between 0.5% and 3% of the bond amount needed. This holds true for all bond types including performance and payment bonds. However, the cost of a surety bond can rise if your personal credit is not the best. Additionally, open bankruptcies, past due child support, and other credit information can raise your cost.