The Surety Bond Blog has been around for almost two years now. Articles have been written on everything from the basics, to information on specific bonds. We do our best to organize all of the information in a easy to find manor, but we realize that it may be difficult for someone new to bonds to know what article to read first. This article will review everything you need to know to obtain the basic foundation of suretyship. Rather than repeating information, we will list what articles should be read.
First, we must learn what a surety bond is. The average person has never heard about surety bonds. Usually, people that think they know what a surety bond is, mistake it for insurance. Therefore, you should appropriately start at the beginning, with the articles, “What is a surety bond?” and “Surety Bonds, Not Insurance“. Once you learn about what a surety bond is, you will need to read, “Why do I need a surety bond?“. The combination of the above three articles should give you an idea of basic surety bond concepts.
Next, we must learn about the different categories of surety bonds. Each category is underwritten differently. Therefore, each category has different application requirements. To learn more about the main surety bond categories and their sub-categories read the article, “Surety Bond Categories“.
Now we have a foundation of what surety bonds are and the different types available. Next, we will review what a surety looks at when underwriting a bond in the article, “Commercial Bonds: Obtain The Lowest Rate (Part 1 of 2) ” . The article only goes over commercial underwriting, not contract. For the purposes of learning the basics of surety we will only review commercial bond underwriting, as contract bond underwriting is more in depth and would go beyond the scope of what we would like to go over in this article. The second part of the series “Commercial Bonds: Obtain The Lowest Rate (Part 1 of 2) “, goes into specifics on what a principal must do in order to become a lesser risk for the surety, which in turn could lower their premium.
Lastly, you should read “Surety Bond Myths“. This article reviews some of the more common suretyship misconceptions. If you ever plan on working in the surety industry, you can also plan on answering some of the questions listed in this article on a daily basis.
Now you should have a very good idea of the basics of surety bonds. With the knowledge you have obtained, you should be able to discuss with a principal about what bonds are, and even do some brief underwriting to determine whether an applicant is “bondable” or not. Should you have any questions regarding any of the Surety Bond Blog articles you can feel free to ask them at the Surety Bond Forums at: http://forums.jwsuretybonds.com