Search for Your Bond or Insurance Here
FAQs About the Best Surety Bond Company
We want you to feel comfortable working with our surety bond company and realize you may still have questions. Our FAQ section below will help you understand more about our business and what we do. Let’s learn more!
What's a Surety Bond?
A surety bond is the written agreement that guarantees performance, payment, or compliance of an act. There are countless kinds of surety bonds out there, and they’re designed to reduce risk to parties in case of disruption or failure of that written agreement.
Most surety bonds are issued for a specific term, such as one year, but they can go up to two or three years. Likewise, we offer “continuous bonds,” which remain in force until canceled by the surety company.
How Do Surety Bonds Work from a Surety Company?
Your application is given a risk category number and a premium based on the review from the underwriters and surety company’s rating system. The premium is what the principal pays once the application gets approved.
Overall, the obligee could file a claim to recover their losses if the principal doesn’t perform whatever act is agreed upon in the surety bond. Likewise, surety bond companies work with the obligee and principal to ensure the claim is valid.
Sometimes, surety bonds will protect the public instead of the principals. For instance, a notary bond protects the people from misconduct, negligence, and other non-performance issues caused by the notary public. If the notary is found at fault, a notary bond is the financial guarantee for reimbursement to the harmed party.
Do Surety Bond Companies Write Insurance Policies?
Though a surety bond is a contract to help manage risk, it’s between three parties. The bond promises that the principal performs the act. If they don’t do so, the obligee recovers their losses from that surety. Overall, surety bonds must get paid back by the principal if surety companies are forced to pay the obligee’s claim. Insurance isn’t repaid by the policyholder.
What Will a Surety Bond Cost?
However, there are variables that can affect how much surety bonds cost. For example, different types can have varying prices. Some contracts and industries are higher risk than others. This could affect the premium and rate. Likewise, the applicant’s financial history, experience, and credit score can influence assigned rates.
How Do You Choose the Best Surety Bond Companies?
Will a Surety Bond company Help Me If I Have Bad Credit?
We offer surety bonds to those with bad credit! You’ll get the same bond as someone with a better credit history, with decent bond premiums and bond limits. We have a license to sell surety bonds!
What Requirements Does a Bond Company Have to Meet?
The right surety bond company has to be licensed in your state to write a surety bond for you. We can help with this and offer many types of bonds, such as:
- Construction bonds
- License and permit bonds
- Contract bonds
- Probate bond options
- Commercial bonds
- Court bonds
Our team can work with a variety of bonding capacity needs. In fact, capacity could be set as an aggregate bond limit or for specific jobs.
Do I Need a Surety Bond?
There are different types available, so the requirements differ based on the industry and state, federal, and local laws your business is subjected to. Usually, surety bonds are necessary for many reasons, such as getting permits and licensure, entering into government contracts, and in court proceedings. We can help you determine if you need one!
Get a Quick Quote TODAY
Thank you for contacting us! We’ll contact you shortly.