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.
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.
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
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
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)
Required in legal cases to protect parties against potential losses.
Probate Bonds (Executor/Administrator Bonds)
Appeal Bonds
Guardianship Bonds
Protects businesses against employee theft or dishonesty. These are optional but smart for companies handling sensitive information or funds.
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
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!