Nebraska

What Bonds Are Required In Nebraska?

Most required surety bonds in Nebraska can be categorized as license and permit bonds, contractor bonds, or court bonds. Read on for more information, or contact an agent for assistance.

Nebraska License & Permit Bonds

License and permit bonds are typically a statewide requirement imposed by a state agency (the obligee) as a condition for obtaining or renewing a business license or permit. In Nebraska, agencies such as the following require license and permit bonds:

• Motor Vehicle Industry Licensing Board, which issues licenses to dealers selling new and used vehicles, trailers, and motorcycles—as well as motor vehicle salvage businesses and auto auctioneers
• Nebraska Liquor Control Commission, which licenses breweries, liquor wholesalers, wineries, beer wholesalers, and distilleries
• Nebraska Department of Health and Human Services, which licenses businesses like training schools, wholesale drug distributors, and a wide variety of professionals and facilities involved in delivering health care services
• Department of Banking and Finance, which licenses mortgage loan originators, money transmitters, investment advisers, securities broker-dealers, and mortgage bankers

While contractors other than electrical contractors are not licensed at the state level in Nebraska, all contractors doing business in counties with a population more than 100,000 must be licensed on a county level. However there is a statewide license bond requirement for any company awarded a contract for more than $2,500. The amount of the license bond depends on the size of the contract.

Use our search tool to find the license and permit bonds you need in order to operate in the state of Nebraska.

Contractor Bonds In Nebraska

In addition to any contractor license bond you may need, certain municipalities in Nebraska require other construction bond types, such as payment bonds and performance bonds. These are generally required for public construction projects as well.

Nebraska Court Bonds

Nebraska courts may require surety bonds from people who are appealing a court decision, in guardianship or conservatorship cases, or in cases involving fiduciary responsibilities. Court bonds ensure that court fees, costs and damage awards are paid, and they guarantee compliance with all rules and regulations governing fiduciary relationships.

How Much Does A Surety Bond Cost?

To determine the cost of a surety bond, the required bond amount is multiplied by the premium rate established by the surety company. Underwriters assign a premium rate based on the applicant’s credit standing. The better your credit, the less you’ll pay for your bond. People with bad credit can qualify for a bond, but they may pay a premium rate as high as 15%.

When A Claim Is Filed

It’s important to avoid behavior that could result in a claim on your bond, because after the surety company pays a claim, it will seek repayment from you. You have the right to defend yourself against any claim you believe to be invalid, but you’ll have to provide evidence to support your case.

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Use our convenient online application to quickly apply for the bonds you need, or contact one of our experienced agents for assistance.