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South Dakota

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Surety bonds issued in the state of South Dakota provide a level of protection for one or more of the parties in a contractual agreement in which professional work is done.

A surety bond works something like an insurance policy. It provides protection for the obligee, which is the hiring company, in the event of malpractice, fraud, or abandonment, and it penalizes the principal guilty of poor performance. Although the company is initially required to pay out the claim against a surety, it is completely within its rights to force the principal to pay back the entire amount.

Functionally, the surety provides a level of confidence to the hiring organization, since the penalties for default are severe and would not casually be violated by any principal. For the same reason, the bonding company can feel relatively confident that no claim will be made against the bond, and that it will not have to pay out all or part of the dollar amount associated with the bond.

Common South Dakota Surety Bonds


Surety bonds issued in the state of South Dakota provide a level of protection for one or more of the parties in a contractual agreement in which professional work is done.

A surety bond works something like an insurance policy. It provides protection for the obligee, which is the hiring company, in the event of malpractice, fraud, or abandonment, and it penalizes the principal guilty of poor performance. Although the company is initially required to pay out the claim against a surety, it is completely within its rights to force the principal to pay back the entire amount.

Functionally, the surety provides a level of confidence to the hiring organization, since the penalties for default are severe and would not casually be violated by any principal. For the same reason, the bonding company can feel relatively confident that no claim will be made against the bond, and that it will not have to pay out all or part of the dollar amount associated with the bond.

Common South Dakota Surety Bonds

Auto Dealer Bond
Contractors Bond
Mortgage Bond
Notary Bond
Freight Broker Bond
Money Transmitter Bond


How do I purchase a South Dakota surety bond?

NFP, the nation's largest and most reliable surety company, is authorized to issue many different types of surety bonds in South Dakota. 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.

South Dakota Surety Bond FAQs

In South Dakota, surety bonds are required for various professionals and industries, including auto dealers, contractors, notaries, money transmitters, and collection agencies. These bonds help ensure legal compliance and protect the public from fraud or financial loss.

South Dakota requires auto dealers to carry a $25,000 surety bond to obtain and maintain a dealer license. The annual premium for an auto dealer bond typically ranges from $200 to $500, depending on the applicant’s credit history and bonding company.

No, a surety bond is not the same as insurance. While insurance protects the policyholder, a surety bond protects the public or the state. In South Dakota, if a bonded individual or business fails to meet their obligations, the surety company may pay out a claim, but the bonded party must repay the surety.

Yes, new businesses can obtain surety bonds in South Dakota, though the cost and approval may depend on the owner's credit and experience. Some bond types are considered lower risk and easier to secure, while others, like contract or financial guarantee bonds, may require additional documentation or collateral for new businesses.

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Explore All Surety Bonds

Browse all of our surety bonds below or connect with the expertise and guidance of one of our surety bond specialists.

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All Types. All States. The very best solutions for your surety bond needs.