Learn More About Getting a Surety Bond in Mississippi

If you need a surety bond in Mississippi for your business, we can help!

All-In-One Mississippi Surety Bond Service

If you are a business owner in Mississippi, you may need one or more surety bonds to operate legally in the state. However, it can be challenging to navigate this process and determine which ones you are required to have. 

At Surety Bonds Co., we make it easy to apply online for all the surety bond insurance you need to comply with all local, state, and federal regulations. Our knowledgeable team can also help you determine which ones you need or which agency can give you more information. Contact us today to get started. 

What Is a Surety Bond in Mississippi?

When you operate a business, you promise to provide certain goods and services to your customers. A surety bond gives your customers recourse if you fail to provide these services or if you fail to deliver them properly. Because surety bonds involve consumer protection, Mississippi requires all businesses in specific industries to have the appropriate bonds. 

These are typically businesses with the risk of substantial monetary loss if the business owner or provider fails to deliver their products or services in a legally acceptable manner. Mortgage brokers, auto dealers, construction companies, and businesses in several other industries fall into this category. 

Who Is Involved in a Surety Bond?

Three parties are involved in a surety bond: the principal, the obligee, and the surety. Each plays a role in protecting consumers from financial harm. These parties are as follows:

The Principal

The principal is the individual or business that is providing the agreed-upon services. They are also responsible for obtaining and maintaining all the necessary surety bonds. 

The Obligee

The obligee is the party that requires the principal to obtain the surety bond. Generally, this is a government regulatory agency or other public entity that oversees the principal’s industry or a specific task the principal performs for the obligee. 

The Surety

The surety is the insurance company that extended the surety bond to the principal. At Surety Bonds Co., we work across all regulated industries in Mississippi to provide all the bonds you need to operate legally. 

How Do Mississippi Surety Bonds Work

A surety bond is a legally binding agreement. If you have a surety bond, you must fulfill the promised services or products in the previously agreed-upon way, or you may be liable for any monetary damages due to your failure to uphold your end of the deal. If you cannot do so, the obligee may file a claim with the surety company and be compensated. The principal will have to pay back this claim, and the terms of that repayment plan will vary. 

Types of Surety Bonds in Mississippi

Mississippi recognizes several types of surety bonds, depending on your industry and services. Some of these include:

License and Permit Bonds

You may need a license or permit bond if you are a service provider. These bonds ensure you follow all local, state, and federal laws while operating your business. Examples include financial services, auto sales, freight brokers, and more.

Contractor Bonds

Contractor bonds are typically for contractors providing construction services for public entities. Local towns and cities may have their requirements for these bonds, so check all local guidelines. These bonds may include bid bonds, performance bonds, and more. 

Court Bonds

Typically, you will only need a court bond if you are in a legal proceeding related to your business and the judge requires you to have one. These surety bonds ensure that any monetary costs or judgments are paid to the appropriate party. Court bonds also include appeal bonds, bail bonds, and more, and are not always related to commercial matters. 

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Surety Bond Regulatory Agencies in Mississippi

Mississippi has several regulatory agencies that require industry participants to obtain one or more surety bonds. These organizations include the Department of Banking and Consumer Finance, the Motor Vehicle Commission, and others. The federal government and local municipalities also have their bonding requirements. Some Mississippi surety bonds you might need include:

  • DMEPOS Competitive Bidding Program Bonds
  • Employee Retirement Income Security Act Bonds (ERISA)
  • Federal Maritime Commission Bonds
  • Freight Broker Bonds
  • Janitorial Service Bonds
  • Lost Instrument Bonds
  • Money Transmitter Bonds
  • Mortgage Broker Bonds
  • Motor Vehicle Dealer Bonds

It is important to note that depending on your business and your services; you may need several surety bonds. Still, not all the surety bonds listed above will apply to your business. Our team can help you determine which ones you will need.

How to Get a Surty Bond in Mississippi

Step 1: Determine Which Bond You Need

Explore all the surety bonds we offer to determine which ones you need for your business or contact us to learn more. 

Step 2: Apply and Pay Online

We make it easy to purchase or apply your surety bond online and offer fast approvals. 

Step 3: Download Your Bond

Once we approve your surety bond, you will get it immediately. Once you have it, you’ll be able to operate legally in Mississippi.  

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How Much Is a Surety Bond in Mississippi?

The cost of your surety bond will vary depending on the risk and your industry. However, we are proud to offer some of the lowest rates in the industry. Apply today to get a quote. 

Apply for Your Surety Bond in Missippi Today!

If you need a surety bond in Mississippi, contact the experts at Surety Bonds Co. Our local specialists are here to help you get the surety bonds you need to protect your business.