How do I get a surety bond in NJ?

To get any type of surety bond in NJ you’ll need to start the process by submitting an application form and the required supporting documentation to a bonding company licensed to operate in the state. Viking Bond Service offers an easy application process for all bonds.

How much is a surety bond in NJ?

Collection Agency Surety Bond NJ collection agencies are required to obtain a $5,000 surety bond and file it with the New Jersey Secretary of State. This is to protect the public against mishandling of collected funds.

Does NJ require surety bond?

The state of New Jersey and some municipalities regulate certain professions and types of businesses by requiring them to be licensed to operate in the state. Typically, a license surety bond is required as part of the licensing process.

How do you secure a surety bond?

4 Easy Steps in Securing a Surety Bond

  1. Step 1: Verify Forms and Amounts. Many bonds go by the name surety bond, so you must specify which bonds and amounts you need.
  2. Step 2: Get a Quote.
  3. Step 3: Apply for a Bond.
  4. Step 4: Verify Information.

What is a surety bond in business?

A surety bond is an instrument under which one party guarantees to another that a third party will perform a contract. How Does the Bonding Process Work? Securing a surety bond is similar to obtaining a bank line of credit. So, just like a bank, a surety company must know a business before committing its assets.

Is surety bond refundable?

Surety companies will typically refund all unearned premium, however there are two distinct situations that will cause a bond to be ineligible for a refund: If the bond does not have a cancellation clause, therefore it cannot be cancelled mid-term and will have no unearned premium.

What are the different types of surety bonds?

Understanding 4 Types of Surety Bonds

  • Surety Bond Basics. A surety bond is an agreement among three parties, who are identified by the following terms:
  • Contract Surety Bonds.
  • Judicial Surety Bonds.
  • Probate Court Surety Bonds.
  • Commercial Surety Bonds.
  • Obtaining a Surety Bond.

What happens when a surety bond is called?

When a performance bond is called and the claim has been deemed valid, a surety company will sometimes find a new contractor to complete the project. When this happens, a new contract is drafted with different terms and prices.

Are surety bonds a good idea?

In many industries, obtaining a surety bond is a necessary but confusing part of the protocol. The fact is that surety bonds are good for business. They instill trust in your company, make it even more reputable and, in most situations, keep it compliant under the law or the governing body of your industry.