Customers buy the promise of a future repair. The bond stands behind it.
A bond for sellers of service contracts and warranties
Providers and administrators of service contracts and extended warranties — for vehicles, appliances, electronics, and homes — are often required by the state to post a bond as a condition of registration. The bond protects consumers who prepay for future service, guaranteeing the provider will honor the contracts and comply with the state's service-contract law.
What a service contract provider bond guarantees
The bond protects consumers and the state — guaranteeing that service contracts are honored (or refunded) and that the provider complies with service-contract law. It is a consumer-protection and financial guarantee, not the coverage itself; you reimburse the surety for any valid claim it pays. (It is distinct from the fidelity-type business service bond.)
How much a service contract provider bond costs
The bond amount is set by the licensing authority. The premium you pay is a small percentage of that amount — typically around 1%–3% for applicants with reasonable credit, more for weaker credit — so a modest bond often costs a few hundred dollars a year. We market it to multiple surety companies to get you the best rate.
Requirements vary by state
Service-contract regulation and bonding, and the required amount, vary by state and by the type of contract (vehicle, home, consumer goods) — some states require funded reserves or insurance instead of, or in addition to, a bond. We confirm your exact requirement before quoting.
Service Contract Provider Bond requirements by state
The required amount and authority differ by state — and sometimes by city or county. We are licensed in all 50 states; request a quote and we will confirm the exact requirement that applies to you.
Frequently Asked Questions
What does a service contract provider bond cover?
It covers consumers' losses if a provider fails to honor service contracts or violates service-contract law. You reimburse the surety for any claim paid.
Who needs a service contract provider bond?
Providers and administrators selling service contracts or extended warranties in states that require registration and bonding. Requirements vary by state and contract type.
How much does a service contract provider bond cost?
A premium that's a small percentage of the required bond amount, based on your credit and financials.
How do I get a service contract provider bond through Cory Washington & Co.?
Request a quote or contact our team. We confirm your exact requirement, market your bond across multiple surety companies that compete for it, and handle the filing. Cory Washington & Co. LLC is licensed in all 50 states.
All surety bond descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or bonding advice. Surety bonds are not insurance. Bond requirements — including amounts, obligees, and bond forms — are set by government authorities and other obligees and change over time; the information presented is general in nature and does not guarantee the availability, terms, conditions, or amount of any bond. Actual bond terms are governed by the bond form issued by the surety and the requirements of the obligee, and any bond remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds a surety, or issues a bond. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please confirm current requirements with the relevant authority and consult directly with a licensed professional at Cory Washington & Co. LLC.