Service contracts bond cost
The South Carolina Department of Insurance requires service contract providers to post $25,000 surety bonds.
These bonds are subject to underwriting consideration, so the price you’ll pay depends on a review of your personal credit report. Qualified applicants could pay as low as $250. Bad credit? No problem! The experts at can get you bonded quickly, easily and for the lowest available rate.
Why this bond
Service contracts bonds in South Carolina are put in place to ensure that principals (service contract providers) conduct business in accordance with the requirements of Chapter 78 of the South Carolina Code of Laws, including properly transmitting any payment received for transmission to an insurer or another individual and applying all funds received appropriately.
If the principal fails to comply with these terms and commits any act of fraud or dishonesty in connection with contract services, the bond protects any person who sustains loss as a result of the principal’s violations up to the full amount of the bond. The principal must reimburse the surety for all damages paid out.
Service contracts bond details
South Carolina service contracts bonds remain in full force and effect until canceled. The surety can cancel the bond by giving written notice of cancellation to the Director of Insurance at least 60 days prior to the effective termination date.
A notary public’s signature is required on the bond form to formally acknowledge the agreement between the principal, surety and obligee.
Become a service contract provider
To fulfill the duties of a service contract provider in South Carolina, applicants must:
- save his/her records for no less than 1 year after the specified period of coverage has expired
choose any one of the following to meet the financial obligations required by the state:
- reimbursement insurance policy
- funded reserve account
- parent company must maintain a net worth of $100 million dollars
Take the first step toward becoming licensed by purchasing the South Carolina surety bond you need!
Apply for your surety bond
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