Missouri

Surety Bond Requirements In Missouri

There are three broad categories of surety bonds that are commonly required in Missouri. These include license and permit bonds, contractor bonds, and court bonds.

Missouri License & Permit Bonds

License and permit bonds are typically a statewide requirement imposed by a state agency, such as the:

• Director of Finance, which licenses check issuers, credit lenders, mortgage lenders, and residential mortgage brokers
• Department of Revenue, which requires surety bonds from transient employers and companies collecting sales tax
• Motor Vehicle Bureau, which licenses motor vehicle dealers
• Office of Consumer Protection, which licenses health clubs

Some municipalities also require certain non-construction companies to be licensed and bonded locally, such as the city of Chillicothe, which requires licensing and bonding for businesses engaged in door-to-door sales.

License and permit bonds guarantee that the licensee will conduct business in accordance with all relevant rules and regulations. Using our search tool will make it easy for you to find out what surety bond(s) you may need in order to operate legally in Missouri.

Contractor License Bonds In Missouri

Although Missouri doesn’t require general building and construction contractors to be licensed at the state level, they must be licensed in the municipalities where they want to do business. State licensing is, however, required for some subcontractors, such as plumbers, electricians, and boiler technicians. You’ll need to check with local governments to find out what their specific licensing and binding requirements are.

Other Construction Bonds

Some Missouri cities and municipalities require construction contractors to obtain other types of contractor bonds (e.g., bid bonds, performance bonds, payment bonds, maintenance bonds, etc.) in order to work on public construction projects.

Missouri Court Bonds

Individual courts in Missouri may require people who are appealing a court decision or acting in a fiduciary capacity (e.g., estate executors, guardians, custodians, or bankruptcy trustees) to obtain a surety bond. The purpose of a court bond is to guarantee the payment of court costs and court-ordered damages. They may also be used to guarantee that fiduciaries will act in accordance with all applicable rules and regulations.

How Much Does A Surety Bond Cost?

The cost of a surety bond is calculated by multiplying the total bond amount by the bond premium rate, which is based on the applicant’s credit history. The better the credit, the lower the premium rate. Bad credit usually won’t prevent an applicant from obtaining a bond, but the premium rate can be as high as 15%—compared to the 1-3% rate usually paid by those with good credit.

What If A Claim Is Filed?

The surety company will pay any valid claim against your bond, but the surety has the right to try to recover that amount from you. Find a reliable surety company like Absolute Surety that can help you defend yourself against any claims you believe to be invalid.

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Absolute Surety is a nationwide bond supplier, with years of experience. We offer competitive rates and can often provide a turnaround in 24 hours or less. Apply now, or contact us for assistance with obtaining the bond you need.