If you are engaged as a Contractor in the State of Delaware and you are a non-resident of the state, you are required by the Division of Revenue to execute a Delaware Contractor (Non-Resident) Bond representing 6% of the total work to be done in a calendar year if the work totals $20,000 or more.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The Delaware Non-Resident Contractor Bond holds you accountable for your business decisions.
By possessing a Delaware Non-Resident Contractor Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.