What is a Michigan Surety Bond?
A Michigan surety bond is a type of bond required by the state of Michigan for certain professions and business activities. It serves as a guarantee that the bond principal will fulfill their legal and financial obligations.
The bond provides financial protection for the obligee, which is typically a state agency or the public, in case the bond principal fails to meet their responsibilities.
Obtaining a Michigan Surety Bond
To obtain a Michigan surety bond, the bond principal must apply and qualify with a surety company. The surety company will assess the applicant's creditworthiness and risk factors to determine the bond amount and premium.
The bond principal is responsible for paying the premium, which is a small percentage of the total bond amount. The surety bond must be maintained for the duration of the business or professional activity in Michigan.
