The surety bond is the contract between three different parties: the obligee (entity requiring the bond), the surety (company issuing the bond), and the principal (person applying for that surety bond). As your surety company, we review the licenses, credit, and experience of the business and owner before issuing the surety bonds.

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.

The surety bond covers an obligee, protecting them from financial harm. However, we are not an insurance company in the traditional sense. Insurance is a contract for risk management between the business/person being insured and an insurance company. Overall, the insurance policy guarantees the third party gets compensation when a loss occurs that’s covered in the insurance contract.

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.

The best surety bond companies have surety bond costs that are fair and transparent. Usually, the price is determined by multiplying the coverage amount by the rate. Therefore, if you have a one percent fee on $100,000, the principal pays a $1,000 premium.

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.

Surety companies should offer surety bonds across many industries. You also want to ensure that surety companies have an online quoting process that’s simple and an easy-to-use website. We offer all those things and much more. In fact, you can often get a same-day turnaround.

Most people know that surety bonds protect everyone involved, but they aren’t sure what options they have with bad credit. If you’ve got a low credit score or no credit history, you may find it challenging to locate a bond company with an affordable rate.

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!

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.

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!