Bonding Company Differences

You can not submit to a surety directly when applying for a surety bond. You must go through an agent that is appointed with the bonding companies. How can you be sure that your chosen agency will choose a surety that is right for you and not just right for them. This article will discuss what to look for when applying for any type of surety bond.

Before accepting any quotes, be sure to find out what surety bonding company they will use to write your bond. Once you find out the name of the surety, double check with the agent that you are in fact approved at that rate, as many agents will quote you the best rate possible at first, not necessarily the one you are approved at.

If you are required to obtain a bond by any federal or state government you can be sure that the bonding company will be accepted if it is T-listed. You should check to see if the surety your agent is writing you through is on the Federal T-listed Surety Bond Companies.

If you are required to obtain bonding from a surety with a specific rating then you can always find out the rating of the bonding company from AM Best.

Every surety has different policies for underwriting standards. You will also want to make sure that your surety can do the following for your company:

Contractor Bonds

  • Provide a bond line that meets your needs both single and aggregate
  • Respond to bid requests in a timely manner

License & Permit Bonds

  • Provide bonds for any additional states you may require
  • Approval up to $100,000 total (multiple licenses)
  • Offer options for clients with bad credit

If you have done your research then you will have no problem with you bonding company (provided they do not have a problem with you). If you have used the general guidelines discussed in this article you should have no problems down the road with your surety. If you have a good surety bond agent then all of this will already of been done for you. Please post a comment for any question you may have and I will be happy to answer it for you.