From the Chesapeake Bay to the Blue Ridge Mountains, the Commonwealth of Virginia is full of thriving businesses. However, much like other states, Virginia does require some types of businesses to obtain surety bonds. These specialized legal contracts provide a financial guarantee for a business’s conduct and are a standard requirement for professional licensing in many industries. Thus, it’s important to know which surety bonds Virginia business owners need to purchase before beginning operations. In this guide, we’ll talk about six of the Virginia surety bonds that are most popular with our customers at Surety Bonds Direct.
TIP: Read What Is a Surety Bond? for our five-minute expert primer on how a surety bond works.
Virginia Contractor License Bond
Requirement Coverage Amount Price & Underwriting State Bond for Class A or Class B Contractor $50,000 From $250 Based on Credit City/County Bond Up to $25,000 From $100 - Instant Approval To obtain a Virginia contractor license, a contractor planning to accept contracts above a certain amount must either prove that they meet the state’s contractor net worth requirements or purchase a Virginia contractor license surety bond. Many of Virginia’s major cities and counties also require contractor license bonds, with terms and penalty sums that vary widely by location.
Virginia Motor Vehicle Dealer Bond
Requirement Coverage Amount Price & Underwriting Car Dealers $50,000 From $250 Based on Credit Motorcycle or Trailer Dealers $25,000 From $125 Based on Credit Virginia requires auto dealers to guarantee their obligations by purchasing a Virginia motor vehicle dealer surety bond. These bonds guarantee that an auto dealer will follow the law, remit all required sales tax to the state of Virginia, and generally conduct their business honestly. Applicants will need to purchase this bond as part of the licensing process for Virginia auto dealers, which also includes requirements for record-keeping, hours, vehicle display space, and more.
Virginia Mortgage Broker, Lender, or Originator Bond
Requirement Coverage Amount Price & Underwriting Lenders or Originators Up to $250,000 From 0.5% Based on Credit Brokers $25,000 From $125 Based on Credit Mortgage brokers, lenders, and originators in Virginia need to purchase Virginia mortgage broker bonds. A mortgage broker bond helps protect consumers and lenders by guaranteeing that a mortgage broker will comply with the law in their mortgage origination and underwriting practices. Under the federal SAFE Act, all states must require mortgage brokers and originators to purchase these bonds. Virginia mortgage brokers should also make sure they’re registered with the NMLS.
Virginia Auctioneer or Auction Firm Bond
Requirement Coverage Amount Price & Underwriting Auctioneer or Auction Firm $10,000 $175 - Instant Approval The Virginia Auctioneers Board requires both independent auctioneers and auction firms to purchase Virginia auctioneer bonds as part of the application process for an auctioneer’s license. These surety bonds protect the public by ensuring that auctioneers obey the law and that they’re financially responsible for their conduct. Once an auctioneer has passed the auction exam, they should apply for an auctioneer bond and submit it to the Auctioneers Board.
Virginia Fuel Tax Bond
Requirement Coverage Amount Price & Underwriting Bonded Importer, Refiner, Supplier, or Terminal Operator $2,000 From $100 Based on Credit All Others Average quarterly tax liability, minimum $2,000, maximum $300,000 From 1% Based on Credit Thanks to Virginia’s seaports and strong logistics industry, fuel sales and importing businesses are also common in the Old Dominion. To ensure that fuel industry businesses pay their sales tax and other required fees in full, the State of Virginia requires these businesses to either obtain a Virginia fuel tax surety bond or file a certificate of deposit. Check the Virginia Department of Motor Vehicles’ tax security rules to ensure that you’re purchasing the right bond for your business type.
Virginia Passenger Carrier or Broker Bond
Requirement Coverage Amount Price & Underwriting Passenger Carriers and Brokers $25,000 $250 - Instant Approval Household Goods Carrier $50,000 From $500 Based on Credit For-hire group passenger transport businesses in Virginia must purchase a Virginia passenger carrier bond. Household goods carriers, such as movers, must purchase a similar bond with a higher coverage amount. These surety bonds protect passengers and cargo owners by guaranteeing financial responsibility on the part of for-hire transportation businesses.
TIP: Need help understanding how sureties calculate bond premiums? See our surety bond cost guide for the information you need.
These are just a handful of the dozens of Virginia surety bonds that Surety Bonds Direct offers. We help Virginia business owners save time and money getting a surety bond with our friendly customer service, fast and free surety bond quotes, and direct wholesale pricing. It’s why Investopedia named us the overall best surety bond company! Get started today with your free online surety bond quote, and we can often have your bond in hand the same day. Questions? Our experts will be glad to help you at 1-800-608-9950.
