Washington Surety Bonds

Many Washington Surety Bonds can be purchased instantly below. Simply search for your bond, enter the information and print your bond instantly. You may also contact us anytime at 913-318-4955 if you have questions or need assistance.

Common Washington Surety Bonds

Contractor License Bonds

Washington Contractor License Bonds are required for licensing in the state.

Washington Notary Bonds

Required in Washington for all commissioned notaries.

Washington Vehicle Title Bonds

Required in Washington when ownership of a vehicle cannot be verified.

Auto Dealer Bonds

Required in Washington for certain car dealerships.

How Washington Surety Bonds Work

A Washington Surety Bond is a three-party agreement between a principal, an obligee and a surety bond company. The principal is the party who is responsible for the bond obligation. This is typically a Washington individual or company who needs a license, permit, or other guarantee running to the state. The party receiving the benefit of the bond is the Obligee. For many Washington surety bonds, this is the state of Washington or one of their departments. The Surety is a third-party bond company that is providing a financial guarantee of the principal's obligation on the bond. Should the principal default on their obligation, a party can make a claim against the bond.

This chart shows how a Washington Surety Bond Works. It includes the responsibilities of the principal, obligee and surety. An image of Mount Ranier and the Washington state flag at the top.

Should a claim be made on a Washington surety bond, the Surety will investigate the claim. If they are required to pay the claim, they may seek reimbursement from the principal under the indemnity agreement. Washington surety bonds provide a lot of value by allowing a damaged party to collect from a Surety without having to go through what could be a costly procedure of collecting from the principal. As a principal, Washington surety bond claims should be avoided.

Important Laws for Washington Surety Bonds

Below is a list of some of the important laws pertaining to surety bonds in the state of Washington.

Indemnity

Washington is a community property state. When one party to a marriage signs an indemnity agreement, it obligates the spouse to the indemnity as well.

Retainage

Washington retainage is addressed under RCW 60.28.011. On public projects, contractors and owners may only hold 5% retainage on monies earned by the contractor. A contractor may put up a retainage bond for the release of retainage. Should a contractor put up a bond for retainage, they must also accept retainage bonds from subcontractors. The party receiving the retainage bond has 30 days to release payment once the bond is received.

Contingent Payment

Washington does not have express statutes on contingent payment clauses such as Pay-if-Paid and Pay-When-Paid. However, case law does suggest that Pay-When-Paid clauses will be treated as a timing issue and must eventually be paid.

Mechanic's Liens

The state of Washington allows for mechanic’s liens against property under RCW 60.04.161. The state also allows the property owner, developer or lender to bond around the lien by posting a release of lien bond. The bond shall be two times the claim amount if the lien is less than $10,000 and one and one half times the claim amount if the lien exceeds $10,000.

Frequently Asked Questions

How to Get a Surety Bond in Washington State.

Many Washington state surety bonds can be purchased online instantly. These include most license and permit bonds, notary bonds and many probate bonds. Smaller contract bonds such as performance bonds and bid bonds may also be purchased online.

Larger or more complicated bonds will generally require additional information such as an application and possibly financial statements.

How to File a Claim Against a Surety Bond in Washington State?

The best way to file a claim in Washington state is to contact the bond company directly. Contact the state agency that handles licensing for that person or company and ask for a copy of the bond. The surety bond will have the name of the bond company. Send the bond company written notice of the claim and any supporting documentation. Make sure to include the bond number and name of the party. The bond company will have a legal duty to investigate the claim.

What are the Washington State Surety Bond Requirements?

The Washington state requirement for a surety bond depends on what type of bond it is. Each license will have its own required bond form and amount. You can search for the bond in the table below and click the "learn more" button to learn about each Washington surety bond's requirement.

How Much Does a Surety Bond Cost in Washington State?

The cost of a Washington state surety bond depends on the type of obligation and sometimes the financial strength of the party applying for the bond.

Most license and permit bonds cost about 1% per year. Washington notary bonds usually cost less than $100. Performance Bonds and Payment Bonds cost 1% - 3% for most contractors.

When Is a Surety Bond Company Liable in Washington State?

It depends on what the bond is guaranteeing. For example, a Washington contractor's license bond would be liable if the contractor did negligent work or did not pay certain subcontractors. A surety may be liable on a notary bond if the notary did not perform their duties correctly.

Surety bond companies are often liable when their principal did not comply with licensing requirements or meet certain obligations such as contract performance or paying obligations due.

Do I Need a Separate Surety Bond in Washington and Oregon?

In almost every instance, the answer is yes. Each state has their own surety bond requirement. This includes common bonds like contractor's license bonds and notary bonds. If a party is operating in both Washington and Oregon, they will likely need surety bonds in both states.