Don’t see your bond? Complete a general application and we’ll track down what you need.
A Comprehensive Guide to New Hampshire Surety Bonds
Whether you are a contractor bidding on a public works project in Manchester, an aspiring auto dealer in Concord, or an executor of an estate in Nashua, you may encounter a requirement for a New Hampshire surety bond.
At Surety1.com, we understand that navigating state bonding
regulations can be confusing. As a bond-only agency with a legacy of “Integrity First” service since 2003, we are here to simplify the process. This guide covers everything you need to know about New Hampshire surety bonds, including types, costs, and how to get bonded quickly.
What is a New Hampshire Surety Bond?
A surety bond is a three-party contract that guarantees you will fulfill your legal or contractual obligations. It is not insurance for you; rather, it is a form of credit that protects the public or the government.
For all surety bonds, the three parties involved are:
- The Principal: You (the business owner, contractor, or individual) who needs the bond.
- The Obligee: The entity requiring the bond (e.g., The NH Department of Safety, a local municipality, or a private project owner).
- The Surety: The financial institution (one of over a dozen represented by Surety1) that backs your promise to the Obligee.
If you fail to follow regulations or contracts, such as failing to pay subcontractors or violating the Consumer Protection Act, a claim can be filed against your bond. You are then liable to repay the surety for any damages paid out.
See our “What is a Surety Bond” Video.
The 3 Main Categories of Surety Bonds in New Hampshire
-
License and Permit Bonds
These are the most common bonds required to obtain a professional license or business permit in the Granite State. They guarantee that you will comply with state laws (like the RSA) and regulations. For instance:
- Motor Vehicle Dealer Bond: Required by the NH Department of Safety (DMV). Both new and used dealers must post a $25,000 bond.
- Real Estate Broker Bond: The NH Real Estate Commission requires a $25,000 bond for licensed brokers to ensure faithful accounting of funds.
- Credit Services Organization Bond: Required by the NH Secretary of State equal to the fees collected not to exceed $25,000.
- Money Transmitter Bond: Required for businesses handling money transfers, with bond amounts starting at $100,000.
- Professional Fund Raising Counsel Bond: Required by the State of New Hampshire, Office of Attorney General, in the amount of $10,000.
If your license or profession has no surety bond requirement attached to it but one still wants to “be bonded”, Surety1.com offers a Business Service Bond at a very affordable price.
-
Construction & Contract Bonds
If you are working on public infrastructure projects, you will likely need these bonds.
- Bid Bonds: Guarantee that if you win the bid, you will accept the contract at the quoted price.
- Performance & Payment Bonds: NH “Little Miller Act” (RSA 447:16): For state public works projects exceeding $75,000 (or $150,000 for municipal projects), contractors must provide a bond equal to 100% of the contract price.
These bonds ensure the project is completed and that all laborers, subcontractors, and material suppliers are paid.
-
Court Bonds
These are required by the New Hampshire Circuit Court (Probate Division) or other courts during legal proceedings.
- Probate Bonds (Executor/Administrator): Required for estates valued over $25,000 (unless waived). The bond guarantees the honest distribution of assets.
- Guardianship Bonds: Required for court-appointed guardians managing the finances of a minor or incapacitated person.
- Appeal Bonds (and other civil court bonds): May be required to stay a judgment while a case is being appealed.
Specialized & Local Bonds in New Hampshire
New Hampshire often defers regulation to the local level. It is crucial to check with your city clerk or building department.
- Manchester, NH: Excavation contractors often require a $10,000 Excavation Bond to ensure they repair city streets/sidewalks after digging.
- Nashua, NH: Various street and sidewalk permit bonds may be required by the City of Nashua Building Safety Department.
- Lost Title Bonds: If you lost your vehicle title and need to register it with the NH DMV, you may need a Certificate of Title Bond. The amount is typically 1.5x the vehicle’s value.
How Much Does a Surety Bond Cost in NH?
The cost of a surety bond (the “premium”) is usually a small percentage of the total bond amount. It is not the full bond amount.
Key Cost Factors:
- Credit Score: On Many Bonds This is the most significant factor.
- Financial History: For large contract bonds, business financials are reviewed.
- Bond Type: Some bonds are riskier than others.
Note: Surety1 works with over a dozen surety markets. This allows us to shop your application around to find the lowest possible rate, even if your credit score is less than perfect.
The cost of most surety bonds is between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms.
How to Apply for a Surety Bond in New Hampshire
At Surety1, we have streamlined the process to get you bonded fast—often within the same day.
- Apply Online: Visit our [Secure Online Application Page] and select the type of bond you need.
- Get a Quote: Many license bonds (like Auto Dealer bonds) often receive instant or same-day quotes.
- Underwriting: For larger contract or court bonds, our agents will review your file and provide a firm quote, usually within 24 hours.
- Pay & Sign: Pay the premium online and sign the indemnity agreement electronically.
- File Your Bond: We will email you the bond (or mail the original with the raised seal if the state requires it, like for Probate bonds). You then file it with the Obligee (e.g., The NH DMV or Town Clerk).
Frequently Asked Questions
Q: Can I get a bond with bad credit in New Hampshire?
Yes. Surety1 has an exclusive Bad Credit Surety Bond program. While the premium may be slightly higher, we can approve 99% of applicants. We believe in helping you get your business license regardless of your credit history.
Q. How long does a surety bond last?
Most license bonds (like Auto Dealer or Real Estate) are issued for a one-year term and must be renewed annually. Surety1 will send you a renewal notice well in advance so you never face a lapse in coverage. Court and Contract bonds typically remain in effect until the case or project is closed.
Q. Do I need a bond for my NH Driver’s Ed School?
Yes. The NH Department of Safety typically requires driving schools to be bonded to protect student tuition payments.
Ready to Get Started?
Don’t let a missing bond delay your business plans.
Click Here to Apply for Your New Hampshire Surety Bond Now
Or call our team of experts at (877) 654-2327 for a free consultation.
About Surety1.com
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.
About Surety1.com
Contact Surety1
Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.