Louisiana requires surety bonds for a variety of licensed professionals, including motor vehicle dealers and commercial or residential contractors. While most bond amounts are set by state regulatory boards, contractor’s license bond amounts vary by city or parish.
NNA Surety Bonds is your source for some of the most common bonds in the state, including appraisal management company, contractor’s license, motor vehicle dealer, and public adjuster bonds.
The Louisiana Real Estate Appraisers Board requires every licensed appraisal management company to purchase a $20,000 surety bond. This protects the public from potential errors or violations on the part of the AMC. You’ll pay an annual premium of $200.
The requirements for a contractor’s license bond in Louisiana are somewhat nuanced. At the state level, a contractor must file a surety bond if they cannot provide a financial statement that shows at least $10,000 net worth or if the contractor currently has a negative net worth. Therefore, the amount of the surety bond will vary depending on what your current net worth is.
There are additional bonding requirements at the local level. Contractors need to check with their city or parish to determine the additional bond amount required by local regulations.
Louisiana requires a $20,000 surety bond for new motor vehicle dealers. If you sell only new cars, this is the bond you need to operate. If you’re selling used cars, you’ll need to obtain a used motor vehicle dealer bond instead.
The purpose of this surety bond is to protect your customers and demonstrate to the state’s Motor Vehicle Commission that you take all regulations seriously. Auto dealers selling new cars in LA can get the required policy for an annual premium of $200.
If your motor vehicle dealership sells only used cars, you’ll need to purchase a surety bond in the amount of $50,000, with a premium of $500. This is a necessary step to obtaining your auto dealership license.
Please note: there is also a new or used motor vehicle dealer surety bond for dealerships that sell both used and new cars.
The Louisiana Department of Insurance requires all public adjusters to purchase a surety bond in the amount of $50,000. NNA Surety Bonds offers this policy for an annual premium cost of $500.
|Bond Name||Coverage Amount||Cost
|Appraisal Management Company Bond||$20,000||$200||Louisiana Real Estate Appraisers Board|
|Contractor's License Surety Bond||Varies||Varies*||Cities and parishes|
|New Motor Vehicle Dealer Surety Bond||$20,000||$200||Louisiana Motor Vehicle Commission|
|Used Motor Vehicle Dealer Surety Bond||$50,000||$500||Louisiana Used Motor Vehicle Commission|
|Public Adjuster Surety Bond||$50,000||$500||Louisiana Department of Insurance|
* Cost can vary depending on the bond amount required and your credit rating
NNA Surety Bonds can provide fast, accurate quotes for professionals in Louisiana. Let us guide you through the bonding process and help you determine what coverage your business requires. Contact our specialists to get started.