Do Surety Bonds Expire?

Yes surety bonds do expire. This is typically called the bond term.

Most surety bonds have a bond term of 12 months from the effective date. The effective date is the date when the bond's coverage becomes active.

When you purchase your bond, you choose this date. And you're allowed to choose a date in the future up to 90 days if you need.

For example, if you're getting an occupational license like a:

• Contractor license bond
• Vehicle dealer license bond
• Mortgage broker license bond

You might future date the bond's effective date to the date you'll submit your application. This is very common.

When your bond's expiration date approaches, you'll have to pay a renewal premium to keep the surety bond active for the next bond term.

Depending on your bond type, you maybe be able to purchase multiple years or terms at one time for a discount. For example, the Oregon residential general contractor bond can be purchased for a one, two, or three year bond term.

How To Never Worry About Your Bond Expiration Date

Having a surety bond is one small piece of running a business or having a contract with another business owner.

It's easy to forget about your surety bond and the expiration date.

That's why it's a good idea to work with a surety agency like Surety Bonds Direct. We manage your bond for you so as your expiration date approaches, you'll get emails and phones calls from your bond specialist to:

• Remind you of your bond's expiration
• And to help you get the renewal premium paid to it remains active

If you're looking to get a surety bond for your license or business, tell us about the bond you need by filling out a free price quote.

You can also call a bond specialist at 1-800-608-9950 if you prefer to speak with a real human being.