What Is a Surety Bond? Surety Bonds in South Carolina Explained

If you're starting a business, applying for a license, or bidding on a contract in South Carolina, chances are you’ve come across the term surety bond. But what exactly is it, and why might you need one?

Let’s break it down.

What Is a Surety Bond?

A surety bond is a legal agreement between three parties:

• The Principal – the person or business required to get the bond

• The Obligee – the party requiring the bond (usually a government agency or client)

• The Surety – the insurance company guaranteeing the obligation will be met

In simple terms, a surety bond guarantees that you will fulfill your responsibilities. If you don’t, the obligee can file a claim, and the surety may cover the loss—though you’ll ultimately be responsible for repaying it.

Why Are Surety Bonds Required?

Surety bonds are used to:

• Ensure businesses follow laws and regulations

• Guarantee contract completion or service delivery

• Provide financial protection to clients, the public, or the government

They’re commonly required for:

• State licenses

• Construction jobs

• Court proceedings

• Utility connections

Common Types of Surety Bonds in South Carolina

🏗️ Contract Bonds

Often required in construction, these ensure the contractor will complete the job according to the terms.

• Bid Bond – Guarantees a contractor can fulfill a job if they win the bid

• Performance Bond – Ensures the project is completed on time and correctly

• Payment Bond – Guarantees payment to subcontractors and suppliers

🏢 License & Permit Bonds

Required by state or local agencies for various professions or businesses to become licensed.
Examples in SC include:

• Auto Dealer Bond

• General Contractor License Bond

• Notary Public Bond

• Mortgage Broker Bond

• Freight Broker Bond (BMC-84)

⚖️ Court Bonds

Required in legal cases to protect parties against potential losses.

• Probate Bonds (Executor/Administrator Bonds)

• Appeal Bonds

• Guardianship Bonds

💼 Fidelity Bonds (Technically not a surety bond but often grouped in)

Protects businesses against employee theft or dishonesty. These are optional but smart for companies handling sensitive information or funds.

Do You Need a Surety Bond in South Carolina?

If you’ve been told to “get bonded,” we can help. At Royal Palms Group, we issue a wide range of surety bonds for South Carolina businesses—often with same-day approvals and competitive rates.

We’ll walk you through:

• What type of bond you need

• How much it will cost (some start as low as $100/year)

• How to keep your bond active and in good standing

Get Bonded Today

Whether you're just starting out or renewing an existing bond, Royal Palms Group makes the process simple.

📞 Call us at 843-764-3330 ext. 1001
📧 Email us at hr@royalpalmsgroup.com
🌐 Or request a bond quote right from our website!