Michigan Surety Bond
Apply for a Michigan Surety Bond today! Absolute Surety is a leading Michigan surety bond company. Apply easily online and take advantage of lowest rates. Quickly browse the bonds we offer in this state, or contact us for a full list.
What Bonds Are Required In Michigan?
There are three broad categories of mandatory bonds in Michigan: license or permit bonds, contractor bonds, and court bonds.
Michigan License & Permit Bonds
Many professionals and businesses that want to operate in Michigan are required to obtain a license or permit bond as a condition of receiving a new business license or renewing an existing license.
License and permit bonds are mandated by several different state agencies, such as the Michigan Department of Licensing and Regulatory Affairs, Health and Human Services, the Department of State, the Bureau of Commercial Services, or the Department of Financial and Insurance Regulation. These and other agencies may require businesses under their jurisdiction to obtain a bond in order to become licensed to operate in Michigan.
The purpose of permit and license bonds is to ensure that businesses comply with all applicable rules and regulations and to protect the public from any financial loss due to the actions of a bonded company.
Michigan Contractor Bonds
There is no statewide requirement for licensing of contractors, but some cities and municipalities require contractors to obtain other types of bonds, such as bid bonds or performance bonds, in order to work on public construction projects in those jurisdictions.
Michigan courts may require certain plaintiffs, defendants, and fiduciaries to obtain a bond. For example, a surety bond may be required to appeal a court decision or serve as an estate executor, guardian of a minor or disabled person, or bankruptcy trustee. The court will inform you of any bond you may need to obtain.
Understanding Surety Bond Costs
You’ll pay a certain percentage of the required bond amount as the premium for a bond. This percentage, or premium bond rate, depends largely on the applicant’s credit history. It can be anywhere from 1% for people with great credit to as much as 15% for people with poor credit. You can still obtain a bond if your credit is poor, but you may pay a higher premium for it.
What Happens When A Claim Is Filed?
When a claim is filed against a bond and is found to be valid, the surety company pays the claim and then tries to recover that amount from the principle (the party that purchased the bond). You have the right to contest a claim, but you will need to prove that the claim is not legitimate.
Apply for a Michigan Surety Bond today through our convenient online application system. With our extensive network, we can offer top rates and quick turnarounds, often in less than 24 hours.