Rhode Island Surety Bonds Overview

A surety bond may be required in Rhode Island for a variety of reasons. Most commonly, applicants for business licenses and contractors in the state need to obtain a bond.

Why do I need a bond?

The purpose of the bond is to guarantee that you will comply with the different requirements for your profession specified in the state laws. If a bonded business violates the law and thereby harms anyone, that person may file a claim against the business's bond. The surety that backs the bond will the investigate the matter to compensate claimants.

For a fuller explanation of the purpose of bonds, see our 'What is a surety bond' guide!

If you’re ready to get your bond, simply find the one you need in the table below and follow the link. We’ll contact you with your free quote as soon as we’ve processed your application. If you’d like to read more about Rhode Island surety bonds, the sections below the table have all the information you need.

Call our agents anytime at (866) 450-3412 to ask questions or receive assistance.

Find the Bond You Need

The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".

Collection Agency Bond State of Rhode Island Collection Agency Apply Now
Professional Fund Raisers Bond Dept of Business Regulation - Securities Div Professional Fund Raisers Apply Now
Insurance Surplus Lines Brokers Bond General Treasurer of the State of Rhode Island Surplus Lines Broker Apply Now
Mortgage Broker (1st & 2nd Mortgages) Bond Dept of Business Regulation, Division of Banking Loan Broker Apply Now
Mortgage Lender/Banker (1st & 2nd Mort.) Bond Dept of Business Regulation, Division of Banking Mortgage Lender Apply Now
Auto & Mobile Home Dealers (New & Used) Bond Division of Motor Vehicles - Dealer's License & Re Dealer's License Apply Now
Auto & Mobile Home Dealers (Used Only, No New) Bond Division of Motor Vehicles - Dealer's License & Re Dealer's License Apply Now
Health Spas/Health Clubs Bond Attorney General Office Health Club License Apply Now
Detectives Bond Town of Cumberland (Town of Cumberland) Detective Bond Apply Now
Employment Agencies Bond Dept. of Revenue, Div. of Taxation Employee Leasing Company Bond Apply Now
Professional Licenses (All Other) Bond Department of Labor and Training Burglar Alarm Business Bond Apply Now
Alcohol (Manufacturers, Warehouses, Wholesalers) Bond State of Rhode Island Dept. of Business Regulation Alcohol Beverage Bond Apply Now
Telemarketing/Phone Solicitor Bond Dept of Business Regulation Professional Solicitor or Fund Raising Counsel Apply Now
Telemarketing/Phone Solicitor Bond Dept of Attorney General, Consumer Protection Unit Telemarketer Solicitation Apply Now

Types of Rhode Island Surety Bonds

There are three different types of surety bonds you can get in Rhode Island, depending on the reason you need them:

  • License bonds must be obtained in order to license a business in the state. Not all businesses need a bond – this depends on local and federal legislation.
  • Construction bonds are needed by Rhode Island contractors who wish to participate in a bid or perform work on a construction project in the state.
  • Court bonds are, in certain cases, requested by state appellate or probate courts of individuals

Learn more about each type of bond in the sections below.

License & Permit Bonds

To get a business license in Rhode Island you may need to post a license bond. Whether or not you need to post one is determined either on a state level, or sometimes on a federal level.

License bonds are meant to protect the state and your clients, by guaranteeing that you comply with state rules and regulations. If you are found to be in violation of those rules, customers may file a claim against your bond and seek to obtain compensation. Business owners should therefore carefully follow legislative updates and only adhere to best business practices.

Тhe auto dealer bond, the contractor license bond as well as the federally-mandated freight broker bonds, are some of the most popular bonds in the state. Of course, many other businesses also require this sort of bond.

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Construction Bonds

To work on a state construction project, licensed and bonded Rhode Island contractors require construction bonds.

These bonds, sometimes called contract bonds, are a form of protection against contractors who breach their contracts or violate state and federal regulations. In other words, they protect the government, the public, and the taxpayer investments that are awarded to contractors on state or federal projects.

Popular construction bonds include bid bonds, which contractors need if they wish to bid on a project. These bonds guarantee that, if awarded, contractors will execute the project at the price they offered during the bid.

Performance and payment bonds are very important bonds, central to the construction process. They guarantee that contractors will perform work on a project as agreed in their contract, and that they will pay their subcontractors and suppliers in due time.

Court Bonds

Sometimes Rhode Island courts may require individuals to obtain court bonds. These bonds are applicable in cases in which an individual has been appointed a fiduciary by a court, and needs to obtain a fiduciary bond to guarantee the finances of the person they will be representing.

Supersedeas bonds, or probate bonds, are court bonds which individuals may need to post when they wish to appeal a court judgement in front of an appellate court.

Cost of Rhode Island Surety Bonds

For a rough estimate of the cost of your surety bond, try our surety bond calculator below!

To understand the estimate quote that the calculator determines for you, you need to know how surety bond cost is determined. The cost, or premium, of your bond is determined on the basis of the total bond amount. This amount is the full penal sum, i.e., the total possible compensation that the surety can pay to a claimant.

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The ballpark estimate on your premium is: $100 - $167

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In other words, the premium is the percentage of the bond amount that you must pay to obtain the bond. That percentage varies for each applicant, but a standard market rate is typically between 1%-4% of the total amount.

How is my premium determined?

Whether you are offered a premium at a standard market rate is determined by your financial situation, and mostly by your personal credit score. Sureties consider your credit score a very reliable indicator of financial stability and reliability. Other factors taken into account by sureties are:

  • Applicant business and personal financial statements
  • Applicant liquidity and asset profile
  • Applicant industry experience and work record

If your credit score is less than perfect – or if you don’t have one – you will be offered a higher rate, due to the increased risk in issuing a bond for you. This means that your rate will vary between 5%-15% of the total amount, depending on your individual case.

How to Get a Rhode Island Surety Bond

Ready to get your bond? Follow the application instructions below!

License bond application

To apply for your license bond, just fill in and submit our simple online application. We will get back to you shortly with a free quote by one of our surety partners.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

Contract bond application

To apply for your contract bond, simply fill out the online application form that's right for you. We will then get in touch with you as soon as we receive and process it.

If you need more information about Rhode Island surety bonds, call us at (866)-450-3412. Our surety bond experts will be happy to help.


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.