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Washington Surety Bonds

Surety bonds play an important role in helping businesses operate legally and responsibly throughout Washington State. From contractors and auto dealers to mortgage professionals and notaries, many industries must carry surety bonds to obtain licenses or permits and protect the public. An independent insurance agency can help business owners across Washington secure the right bond quickly and affordably.

Here we explain how surety bonds work in Washington, common bond requirements, and key cities like Seattle or Spokane where businesses frequently need bonding services.

What Is a Surety Bond?

A surety bond is a financial guarantee that a business or individual will follow laws, regulations, and contractual obligations. Surety bonds involve three parties:

  • Principal: The business or individual required to obtain the bond

  • Obligee: The government agency or entity requiring the bond

  • Surety: The bonding company that guarantees the principal’s compliance

If the bonded party fails to meet obligations or violates regulations, a claim can be made against the bond to compensate affected customers or agencies.

Surety bonds protect consumers and government entities while allowing businesses to meet licensing requirements and build trust.

Common Types of Surety Bonds in Washington State

Washington businesses may need several types of surety bonds depending on their industry and location.

Contractor License Bonds

Contractor bonds are among the most common surety bonds required in Washington. The Washington State Department of Labor & Industries requires contractors to carry a bond before they can register and legally operate.

As of 2024, required bond amounts include:

  • $30,000 bond for general contractors

  • $15,000 bond for specialty contractors

These bonds guarantee that contractors will follow state laws, pay suppliers and workers, and complete projects according to contract.

Additional local bonds may be required for right-of-way or public works projects in certain cities.

License and Permit Bonds

Many Washington businesses must obtain license or permit bonds to operate legally. These bonds ensure compliance with state and local regulations and protect consumers from financial loss.

Common examples include:

  • Motor vehicle dealer bonds

  • Mortgage broker and loan originator bonds

  • Collection agency bonds

  • Employment agency bonds

  • Public adjuster bonds

Each bond type has its own required amount based on state statutes or business activity.

Financial and Professional Bonds

Some industries must carry bonds tied to financial services or fiduciary responsibilities. For example:

  • Consumer loan companies must maintain a surety bond, with amounts based on loan volume (starting around $30,000 and increasing with business activity).

  • Notaries in Washington must maintain a $10,000 notary bond for their commission term.

These bonds help ensure ethical practices and financial accountability.

Commercial and Contract Surety Bonds

Washington businesses working on public or large private projects may also need:

  • Bid bonds

  • Performance bonds

  • Payment bonds

  • Maintenance bonds

These bonds guarantee project completion, payment to subcontractors and suppliers, and proper maintenance after completion.

Surety Bond Requirements in Washington Cities

Businesses throughout Washington must meet bonding requirements to operate legally. Key cities where bonds are commonly required include:

  • Seattle: Contractor bonds and right-of-way or side sewer bonds for public infrastructure work

  • Spokane: Street obstruction and contractor bonds for construction projects

  • Tacoma: Right-of-way and contractor bonding requirements for public works

  • Vancouver: Permit and contractor bonds for city projects

  • Bellevue, Everett, Kent, Renton, and Yakima: Various license and permit bonds depending on business type

Local municipalities often require additional bonds beyond state requirements, especially for construction, utility, and transportation work.

Why Work with an Independent Insurance Agency for Surety Bonds?

Independent insurance agencies offer significant advantages when securing surety bonds in Washington:

  • Access to multiple surety markets for competitive pricing

  • Fast approvals for many license bonds

  • Guidance on state and local requirements

  • Support with bond renewals and changes

  • Assistance with claims or bond compliance questions

Whether you are starting a contracting business in Seattle, opening a dealership in Spokane, or expanding operations in Tacoma, an independent agent can help ensure you meet all bonding requirements.

Get Help with Surety Bonds in Washington State

Surety bonds are essential for operating legally and building trust with customers and regulators in Washington. From contractor license bonds to specialty commercial bonds, requirements vary by industry and location.

A knowledgeable independent insurance agency can help businesses across Washington—including Seattle, Bellevue, Spokane, Tacoma, Vancouver, Everett, and surrounding communities—secure the right bond quickly and affordably.

Contact Richardson Insurance Services, Inc today to get a surety bond quote and ensure your business stays compliant and protected. 208-322-1030