What is a Michigan Security Alarm Contractor Bond?

Michigan Security Alarm Contractor BondIn Michigan, security alarm system contractors must be registered and post a surety bond before being able to set up business in the state.

The Security Alarm Contractor Bond is a part of the registration/licensing requirement that guarantees faithful and honest conduct of the business.

The bond also financially compensates persons injured by willful, malicious, and wrongful acts committed by the security alarm contractor.

Security alarm contractors are engaged in the installation, maintenance, modification, surveillance, or servicing of security alarm systems, or that responds to a security alarm system.

A security alarm contractor business must:

  • not have less than four years’ experience as an employee of the holder of a certificate of authority to conduct a security alarm system contractor business
  • have at least four years’ experience of full-time work in a supervisory capacity.

If not, the Department will notify applicants authorizing them to take a certification exam.


What are the bond conditions?

  • The bond must be issued by a Surety authorized to conduct business in the State of Michigan.
  • The Obligee is the Michigan Department of Licensing and Regulatory Affairs.
  • The Principal (security alarm contractor) will comply with rules, laws, and provisions as set in the Private Security Business and Security Alarm Act Act 330 of 1968.
  • The bond is made payable for the benefit of the people of the state and any person(s) harmed by willful, malicious, and wrongful acts of the licensee or any of its agents or employees.
  • If the Principal fails to faithfully and honestly conduct business, the bond will indemnify any person damaged.
  • The aggregate liability of the Surety will not exceed the bond amount.
  • The bond remains valid until the expiration of the license unless the Surety gives the Department 30 days’ written notice of cancellation.


What is the bond amount?

The bond amount is $25,000.

The cost of the bond, which is a percentage of the bond amount, is going to be based on the applicant’s financial standing and credentials. The bond amount can be anything between 1% and 5%.


How do I obtain a Security Alarm Contractor Bond?

Getting bonded is accessible and affordable. Please follow these steps:


Apply for the bond. You need to submit a bond application to us. If you’re ready to apply now, you may fill up a form HERE!

STEP 2: Underwriting

We will ask you for a couple of valuable information needed for the bond. This will include your credit score.

Also, you need to submit a copy of the BOND FORM (which can be obtained from the Michigan Department of Licensing and Regulatory Affairs).

An underwriter will carefully evaluate your submitted documents.

STEP 3: Bond execution

Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!

*Note: A license issued is valid for two years, but the Department may revoke a license at any time for proven reasons. The Department will prescribe the form of a license certificate. License renewals mean you may renew your bond.

Get your Security Alarm Contractor Bond by contacting us today!

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