South Carolina service contract provider bonds.
From $250.
A service contract provider registered in South Carolina must show the Director of Insurance it can pay for the repairs it has sold. One permitted route is a funded reserve plus a financial security deposit with the Director, usually a surety bond. Your filing sets the amount, and premiums cost 1% of the bond amount.
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How much does a South Carolina service contract provider bond cost?
1% of the bond amount, from $250 at the $25,000 minimum. Enter your amount in the calculator for the exact price.
Three steps. 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 application. No credit check up to $50,000.
Issued
No credit check up to $50,000, and most applications approve instantly. Larger deposits can draw a brief look; above $50,000, any check is a soft pull that never affects 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
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
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 sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $50,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued instantly.
These are the actual issuing fields — your provider details and the deposit amount your filing requires. No credit check up to $50,000.
Start the application →Common questions.
Other South Carolina bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Provider registration, one filing away.
1% of the bond amount, no credit check up to $50,000. Free until issued.