Vermont Service Contract Provider Bond
AmeriPro Surety Bonds | 844-589-9732
Licensing of Service Contract Providers
The Vermont Department of Financial regulation is the governing body entrusted with the licensing and regulation of service contractor provider companies in the state.
Licensing includes a $600 fee, and the registration is good for a period of 3 years.
The surety bond requirement is as follows:
- A minimum $25,000 surety bond;
- Or 5% of the gross annual payments from all service contracts in force. You are also required to provide proof of your calculation of the amount required to the Department.
Our agency will not be able to assist you in determining the amount your business requires; we can only provide you with the state’s guidelines.
Qualifying and the Premium
Obtaining your Vermont service contract provider bond involves completing a surety bond application. The application can in many cases be taken from you over the phone. If required, we can sometimes even allow you to provide an electronic signature.
Once your application is submitted, it is reviewed by an underwriter. This review includes a credit check inquiry. Good credit will be required for approval.
The standard rate for this bond is 2% of the amount required: a $25,000 will have a $500 premium; a $100,000 bond will have a $2000 premium.
Once your bond has been approved and the premium paid, our agency issues it to you along with a Power of Attorney form.
Upon receipt of your original bond by mail, you’ll sign it as Principal and mail it to the following address for filing:
Licensee and the Commissioner of Financial Regulation
89 Main Street
Montpelier, VT 05620-3101
Attention: Producer Licensing
Your Surety Bond Term
The bond is issued for a period of one year. You’ll need to renew your bond at the end of or before the end of your bond term. It is likely that you’ll require a different surety bond amount upon renewal.
Purpose Of Your Surety Bond Requirement
The purpose of your service contract provider bond is to serve as a financial guarantee which ensures your compliance with state of Vermont Title 8, Chapter 113, Vermont Statutes Annotated, as amended.
AmeriPro Surety Bonds is an online surety bonds-only agency. We provide license and permit, court, probate, and other surety bonds in Vermont and all 50 states.
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