SC service contract provider bonds.
From $100. Enter your amount.
A service contract provider registered in South Carolina has to show the Director of Insurance that it can actually pay the repairs it has sold. One of the three permitted routes is a funded reserve plus a financial security deposit placed with the Director — usually a surety bond. Premiums cost 1% of the bond amount, $100 minimum; the application collects no credit information, and most applications approve instantly. Enter the amount your filing requires and your exact price appears at the application.
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Apply to filed in one sitting.
There is no long underwriting queue on a security deposit bond — enter your amount, pay, and file it with your registration. The whole thing:
Apply online
Your provider details, the deposit amount your filing requires, and an effective date. That is the entire application — there is no credit section in it.
Issued
The application collects no credit information, and most applications approve instantly. Larger deposits can draw a brief look, and if a check ever runs it is a soft pull that will not touch your score.
File with the Director
Your executed bond arrives by email, ready to go in with your provider registration or its annual refiling. Wet-ink original mailed whenever the Department insists.
What it is and who needs it.
What the service contract security actually covers
A service contract is the extended warranty a consumer buys separately from the product: an agreement, for its own stated price and a stated term, to repair, replace, or maintain property against defect or normal wear — often bundled with towing, rental reimbursement, or road service. The provider is whoever is contractually on the hook to the contract holder. South Carolina regulates the whole category under Title 38, Chapter 78.
Every provider must register with the Director of Insurance on the Department’s form and pay an annual fee, and must satisfy one of three financial responsibility routes. Route one: insure all its contracts under a reimbursement insurance policy from an authorized insurer. Route three: carry $100 million of net worth or stockholder’s equity, which is a door open to a handful of manufacturers and effectively nobody else.
Route two is what this bond serves. The provider maintains a funded reserve account for its outstanding South Carolina obligations and places a financial security deposit with the Director on top of it — a surety bond, securities, cash, a letter of credit, or another form the Director approves. The reserve is sized off gross consideration received less claims paid; the deposit is a further share of that same figure, and §38-78-30 sets a $25,000 floor under it however small the book is.
The security exists because the money a provider collects today buys repairs it may not have to perform for years. If the provider fails in the meantime, the reserve and the deposit are what stand behind the contracts already sold. The bond is not insurance for you — if the surety pays, you repay the surety — and it must stay in place for as long as you are registered, so we track the expiry and notify you at 60 and 30 days.
You need this bond if you’re
One application, issued instantly.
These are the actual issuing fields — your provider details and the deposit amount your filing requires. There is no credit section in this application.
Start the application →Common questions.
Other South Carolina bonds.
Provider registration, one filing away.
1% of the bond amount, $100 minimum, no credit section in the application. Free until issued.