South Carolina Surety Bonds

South Carolina is famously known for its agriculture, textiles, and tourism industries. The state has a rich history that attracts many visitors every year. The capital city of Columbia is home to the University of South Carolina, which was founded in 1801. The population of South Carolina is around four million people and there are a number of cities throughout the state that has over 30,000 residents.

When it comes to business, there are a number of industries that are thriving in South Carolina. The state is home to a large number of automotive companies, and the aerospace industry is also expanding rapidly. There are also a number of pharmaceutical companies located in South Carolina, which is a testament to the high quality of life in the state.

If you’re looking to start a business in or expand into the state, it’s important to understand the various business and industry regulations that apply. One such requirement is often obtaining a South Carolina surety bond.

A surety bond is an agreement between three parties: the surety, your business, and a third party who needs protection (usually the state). It’s a type of insurance that provides financial security if your business fails to meet its contractual obligations.

A South Carolina bond is a financial instrument that guarantees the performance of a company or individual when they enter into an agreement with another entity. They can be used by businesses, individuals, and government agencies for many purposes.

There are several types of South Carolina surety bonds, and the bond type you need will depend on your business. Some bonds are South Carolina required by the state, but many more are optional. It’s important to understand exactly what required bond is needed for your industry before you apply so that you only have to get one.

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 South Carolina bond, both parties agree to the terms and conditions of a contract that carries an obligation to perform. These are usually written into an agreement that ensures compliance with state laws regarding bonds required in South Carolina. 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 important thing about a surety bond agreement is that all Principals and the approved Surety insurance company in South Carolina act as guarantors; however, the bonding company will be responsible for payment due to defaults on contractual agreements under the bond. The bond allows the bonding company to seek repayment from the Principal if a claim is valid.

What is a surety bond used for?

Whats a surety bond you ask? Well, it guarantees an agreement between three parties by securing the obligation in that it is used to:

When do you need a surety bond?

Surety bonds are a form of performance security or financial guarantee issued by an insurance company. They are required for a variety of financial transactions, from government procurements to import and export. In the United States, bonds have been used since 1749 to guarantee that a party will fulfill its obligations under a contract or agreement.

South Carolina bonds work as an integral part of any business’s success! Typically a transaction, contract, or professional licensing requirement will indicate if a performance bond, payment bond, contract bond, license and permit bonds, or another type of bond is needed.

What are contract bonds?

The largest category of South Carolina surety bond is called contractor bonds, or bonds specific to the construction industry. SC contractor bonds are one of the largest markets in the state. Contractor surety bonds more commonly are performance bonds, bid bonds, and payment bonds. Construction bonds account for approximately 70% of all bonds written in the USA.

Required by residential and commercial contractors both big and small, general and across specialty trades. Surety bond South Carolina requirements vary by municipality and ensure the protection of the public and consumers via performance bonds for public projects and various trade bonds.

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.

South Carolina’s major industries are agriculture and manufacturing. The state is known for being the second leading producer of peanuts in the country, but also produces cotton which accounts for 39% of all U.S. exports to China with a value at $38 million alone in 2016.

The Palmetto State is also home to the burgeoning aerospace industry. Boeing has a manufacturing facility in North Charleston, which employs more than 6000 people and builds the aft fuselage for the Dreamliner passenger jet. There are also a number of auto parts suppliers located in South Carolina, including Michelin North America’s $750 million plant in Anderson.

Large or small, many of these industries require companies to obtain bonds in order to operate. A South Carolina bond functions as a contract between your business and surety company that guarantees the fulfillment of obligations under specific conditions. This means that surety bonds provide protection against losses resulting from the inability to fulfill contractual agreements on time with customers, clients, or suppliers.

If you are looking for bonded protection, there are a few things to keep in mind. Surety bonds are not always one-size-fits-all. The bond cost and terms will vary depending on the risk involved with your business and industry.

Business owners can get bonded for their businesses to help protect the company’s assets and employees, as well as ensure that industry laws are upheld by all parties involved. Businesses need a certain amount of financial backing before they start operating; this is where a South Carolina surety bond comes into play.

Businesses that operate under the authority of federal or state law need a surety bond. These businesses include but are not limited to: banks and other financial institutions; securities brokers and dealers; insurance companies; investment advisors and planners; motor carriers (such as trucking companies); and business of public utilities.

Additionally, businesses who contract for construction work, including developers/builders; architects; professional engineers; contractors; subcontractors; suppliers of materials used in construction; and businesses involved in design-build projects all need a surety bond.

All in all, the industries of South Carolina are vast and diverse…if you’re looking for a surety bond required for your business there is no better place than Simpli Surety!

How do you get bonded in South Carolina?

In order to bond South Carolina businesses, you will need to contact bonding companies that are licensed in the state, such as Simpli Surety. You will then be required to fill out a surety bond application and submit it along with all relevant documentation. Some applications may require additional documents like proof of business bank account balances or your articles of incorporation (bylaws), but Simpli Surety has many instant bonds available in minutes.

If you are approved for coverage, the surety bond company will issue you a policy and send it to you via email. The policy will outline the terms and conditions of your bond as well as the surety company’s responsibilities.

Why would I need a surety bond in South Carolina?

You may need a bond in South Carolina for your business if you are opening up shop as an independent contractor or self-employed.

A South Carolina surety bond is a common requirement for many types of businesses including cotton merchants, public adjusters, and mortgage companies.

Surety bonds are financial guarantees that you promise to abide by the terms of an agreement. Other reasons why businesses may require these include:

What surety bonds are common in South Carolina?

There are a few surety bonds South Carolina requires. The most common surety bond types are commercial surety bonds. This type of bond is used for businesses that want to get a license, or for companies that need to show financial responsibility. There are also many types of performance bonds, including construction and contract bonds. Each type of bond has its own purpose and is required for different activities.

Another common bond in South Carolina are license and permit surety bonds. These may be required for a company that needs to get a business or professional license from the state of South Carolina, as well as any other type of permit. Some examples include contractors, financial institutions, utility companies, and public service corporations. The final category that is important for companies to understand in South Carolina is the court surety bond. These can be required when a company needs to appear before a court and present evidence, such as real estate agents and collection agencies.

The types of businesses that typically need surety bonds in South Carolina include:

All in all, the industries of South Carolina are vast and diverse. If you’re looking for a required bond for your business there is no better place than Simpli Surety.

Is it easy to get a bond in South Carolina?

It actually is! The state of South Carolina has made it really simple and fast to apply. If you choose to get your bond online, the process can be completed within minutes by first filling out an online application!

What are the minimum bonding requirements in South Carolina?

The amount of money required as bonding needs in South Carolina ranges depending on the industry and type of contract or agreement you plan to enter. There is no minimum amount for this type of bond, but our surety expert partners have to be compensated for any losses they incur on your behalf.

Which government agencies require surety bonds in South Carolina?

A South Carolina bond is required by a number of government agencies, including the:

The types of surety bonds that are required vary depending on the agency. There are bond requirements for other government agencies in South Carolina , but the above are some of the most common. Be sure to check with your specific agency to find out their specific bonding requirements.

What are the most popular surety bonds in South Carolina?

There are three main types of South Carolina surety bonds: performance, payment, and indemnity. A performance bond guarantees that the contractor will complete the project as specified in the contract. A payment bond guarantees that subcontractors, specialty contractors and suppliers will be paid for their work on the project. An indemnity bond protects the owner of a property from any third-party claims arising from the contractor’s work on a project.

South Carolina surety bonds are required for many different types of projects. Some examples include:

Are there any other types of surety bonds in South Carolina?

Yes, surety bonds are also used for many other purposes. Some common uses include:

South Carolina has a major construction industry that requires performance guarantees in the form of surety bonds to protect against failing to meet deadlines. There are also many contractors who require bond protection for their employees – especially when they’re working on bridges, tunnels, or other public works and public construction projects.

What other surety bonds are common?

Common across all states is the forever mainstay Construction industry. As a large and populous state, contracting is big business. Required by residential and commercial contractors both big and small, general and across specialty trades. South Carolina’s bonding requirement varies by municipality and trade but all ensure the protection of the public and consumers via performance bonds for public projects.

The best surety company in South Carolina is us! SimpiSurety has all of these bonds and more SC surety bonds available instantly. Search for your bond type and apply online in minutes.

Although, whomever you choose, be sure they are a licensed insurance agency or experienced bond specialist through a surety bond agency in South Carolina that can help you get bonded for the right bond amount. All surety companies are not the same, so choose wisely when choosing your South Carolina bonding agent.

• SC – Private Investigation Agency $10,000 – To operate legally in SC, private investigative businesses must post $10,000 surety bonds with the Department of Licensing. Buy Now
• SC – Pawnbroker Special Deposit $15,000 – To offer contracted pawnshop services, the South Carolina Department of Consumer Affairs requires a Pawnbroker Special Deposit Bond. The applicant will be guaranteed that they adhere to S.C.’s regulations and provide compliant items. Buy Now
• SC – Investment Adviser $50,000 – The South Carolina Attorney General’s Legal Securities Division is in charge of investment advisor and broker-dealer registration. The Division offers investor education and ensures an equitable securities market through services such as anti-fraud deterrence and unethical behavior prevention. The 2005 uniform securities law, which went into effect in South Carolina, contains details of the process for registering as an investment advisor. Buy Now
• SC – Employment Agency $3,000 – In the United States, employment agency bonds are a type of security that may be required of firms who provide chances for individuals to get jobs in exchange for a fee. Consumers benefit from the employment agency bond as an additional safeguard. The bond is in place to ensure that agencies adhere to appropriate regulations and laws. 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