Michigan
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Surety bonds in Michigan are similar to those offered in other states, but with terms and performance requirements specific to the businesses of the state of Michigan.
They serve the purpose of being a kind of guarantee for a hiring organization that a contractor agreeing to do work for that organization will actually complete the work satisfactorily.
The third party involved in Michigan surety bonds is a bonding company, which puts up a money guarantee in the event of contractor failure. However, there is a strong incentive for the contractor to perform up to expectations, because even though the bonding company would pay the initial claim amount to the dissatisfied hiring organization (often a government agency), the contractor would ultimately be required to reimburse the company. It would also be considerably injurious to the contractor's reputation to have defaulted on the terms of work specified in a bond.
Common Michigan Surety Bonds
Surety bonds in Michigan are similar to those offered in other states, but with terms and performance requirements specific to the businesses of the state of Michigan.
They serve the purpose of being a kind of guarantee for a hiring organization that a contractor agreeing to do work for that organization will actually complete the work satisfactorily.
The third party involved in Michigan surety bonds is a bonding company, which puts up a money guarantee in the event of contractor failure. However, there is a strong incentive for the contractor to perform up to expectations, because even though the bonding company would pay the initial claim amount to the dissatisfied hiring organization (often a government agency), the contractor would ultimately be required to reimburse the company. It would also be considerably injurious to the contractor's reputation to have defaulted on the terms of work specified in a bond.
Common Michigan Surety Bonds
License and Permit Bond
Auto Dealer Bond
Contractors Bond
Fidelity Bond
Collection Agency Bond
Certificate of Title Bond
How do I purchase a Michigan surety bond?
NFP, the nation's largest and most reliable surety company, is authorized to issue many different types of surety bonds in Michigan. We can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.
Our short online application makes it easy. Click below to start the application process today.
Michigan Surety Bond FAQs
Michigan requires surety bonds for a wide range of industries and professions. Common examples include auto dealers (with a $10,000 bond requirement), contractors on public projects, collection agencies, and notaries.
The cost of a surety bond in Michigan depends on the bond amount and your financial profile. Most premiums range from 1 to 10% of the total bond value. For instance, a $10,000 auto dealer bond may cost as little as $100 annually for someone with good credit.
Yes, many surety companies will still issue bonds to applicants with lower credit scores. However, the cost will likely be higher, typically 5 to 15% of the bond amount. Some bond types may also require additional documentation or collateral if you’re considered high risk.
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