Rhode Island Surety Bonds

Rhode Island is a small but mighty state located in the northeast region of the United States. Though it’s one of the country’s smallest states by landmass, Rhode Island is home to more than 1 million people and is known for its rich history, delicious seafood, and beautiful coastal landscape. Providence, Rhode Island’s capital city, is also the state’s largest city, with more than 180,000.

Like all states, Rhode Island has its unique surety bond requirements for businesses and individuals operating within the state. If you’re planning to start or run a business in Rhode Island that requires a surety bond, read on to learn everything you need to know about getting a surety bond in the Ocean State.

At Simpli Surety, we are your hassle-free, cost-friendly direct surety bond RI provider. No drawn-out quote process, our instant issue platform has surety bonds delivered to your inbox in minutes!

What is a surety bond? How does a surety bond work?

It’s a type of contract that safeguards another party from financial loss. In the case of surety bonds, there are three parties:

• Principal (the person or business which needs to secure their liability)
• Surety (a third party, often an insurance company, who agrees to assume responsibility for the debt and acts as guarantor)
• Obligee (the person or business for whom the surety bond is being issued)

To issue a Rhode Island surety bond, both parties agree to a contract’s terms and conditions that carry an obligation to perform. These are usually written into an agreement that ensures compliance with state laws regarding surety bonds in Alabama. The details covered include:

1) Principal’s ability to perform a service and or repay a debt if necessary
2) Surety’s obligation should they become financially liable because the Principal fails to meet their obligations under the contract

The critical thing about surety bonds is that all Principals and the approved Surety insurance company in Rhode Island act as guarantors; however, the Surety will be responsible for payment due to defaults on contractual agreements under the bond. The bond allows the surety company to seek repayment from the Principal if a valid claim.

What is a surety bond used for?

In Rhode Island, there are many industries this applies to.

For example, Rhode Island is most notably known for its jewelry and manufacturing industries. The state is home to many well-known jewelry companies and manufacturing companies, including Hasbro and CVS. Manufacturing companies often require surety bonds in conducting their business as suppliers to distributors.

The types of surety bonds most popular in Rhode Island are contract performance, license and permit, and product warranty. These three types of surety bonds are common in many states throughout the country. Contract performance bonds guarantee that a contractor will complete the project outlined in the contract agreement. License and permit bonds ensure that businesses comply with state licensing and permitting regulations. Product warranty bonds protect the buyer if the product they purchased is defective.

There tends to be a bond need in just about every industry, required or as optional protection.

Can I get a surety bond online?

Yes. At Simpli Surety, we have 1000’s of instant issue surety bonds available to our clients on-demand at low surety bond rates. Our surety bond experts are here to help.

If you are looking for surety bond cost, the good news is that it’s not as expensive as most people think. Across the industry, Surety bond costs can range depending on the type and terms of the bond. The fee is calculated, also called the surety bond premium, as a percent of the total coverage needed or bond amount, usually ranging anywhere from 1% to 3%. For instance, straightforward license and permit bonds tend to fall on the lower end of the spectrum even below 1%. While a more complex performance bond for a large construction project that carries a higher risk and bond amount, therefore, the surety bond cost can range higher between 1.5% to 2.5% on average. 

Surety bond costs could be higher or lower depending on your surety company, the type of work you are doing, and other factors. If you need help determining how much a surety bond will cost for your specific situation, use our search to find the instant issue bonds you need, and often the surety bond cost and bond amount are listed on the application.

At Simpli Surety, we have 1000’s of instant issue surety bonds available to our clients on-demand at a low surety bond rate. The application and approval process is completed quickly, so you can get back to your business. 

On the rare occasion, your bond application requires additional underwriting, our surety bond agents with over 40 years of experience will step in to help.

The best surety company in Rhode Island is us! SimpiSurety has all of these bonds and more RI surety bonds available instantly. Search for your bond and apply online in minutes.

Although, whomever you choose, be sure they are a licensed surety bond agency in Rhode Island that can help you get bonded for the correct bond amount. All surety companies are not the same, so choose wisely when choosing your Rhode Island bonding agent.

• Rhode Island Bi Weekly Payment Bond Buy Now
• Rhode Island Employee Leasing Company – Corporation Buy Now
• Rhode Island – Telephone Solicitation Buy Now
• Newport, RI – Street Excavation Buy Now
• Cumberland, RI – License and Permit Buy Now

• Freight Broker Bonds – often referred to as BMC-84 bonds, are a Federal as opposed to state mandate made by the Federal Motor Carrier Safety Commission to conduct business as transportation brokers. Coverage to $75,000. Buy Now
• Durable Medical Equipment Provider Bonds – often referred to as DMEPOS bonds are required of suppliers of prosthetics, orthotics, and durable medical equipment. A federal mandate per the Centers for Medicare and Medicaid Services to mitigate Medicate billing fraud. Min bond requirement of $50,000 per National Provider Identifier needing Medicate billing authorization. Buy Now
• Performance Bonds – this bond covers general performance obligations related to a contract but most often ensures the satisfactory completion of performance by a contractor. The bond penalty is tied to contract value and can be mandated at federal, state, or municipal levels. Buy Now
• Bid Bonds – a construction bond that protects the developer or project owner of a construction project during the bidding process. It guarantees them that if the bidder can or will not honor the terms of the bid, the owner will be compensated. Bid bonds are commonly required on projects that also involve performance bids and payment bonds. Buy Now
• Payment Bonds – these surety bonds are often paired with performance bonds ensuring prompt payment to suppliers and subcontractors on the project. This signals to the owner, supplier, and sub that the contractor will be compliant in working with them to completion and paying on time. Buy Now