Many people that are required to obtain a surety bond have never heard of them. In fact, 1 out of 5 calls I receive are from a client who do not even pronounce the word surety correctly. A common question from our clients is, “Why do I need a surety bond?”.
The obvious answer is because the obligee is requiring it of you in order to do business with them. The real question is, why is the obligee requiring the bond of you? If you are in need of a commercial bond then it is not in place to cover you (the principal), but anyone you will be doing business with. Contract bonds are in place to guarantee the work will be completed per the terms of the contract. Court bonds are required for a variety of different reasons. For instance guardianship bonds are required by the court to assure the guardian will act in the best interests of the minor/incapacitated person. Other court bonds such as appeal bonds are required to ensure the defendant will not flee if found guilty.
There are numerous reasons as to why bonds are required. The best way to find out why your bond is required is to actually read a blank copy of the bond and find out exactly what it is guaranteeing. Each bond form is specific, above is only a generalization of what a bond guarantees.
If you have any questions on your specific bond type, please post a comment and I will be glad to help you better understanding of why you are required to obtain your bond.
IM INTERESTED IN A SURETY BOND FOR MY DOG I DIDNT SEE ANYTHING RELATED TO A SURETY BOND FOR A DOG CAN YOU TELL ME WHETHER YOU CARRY BONDS OF THIS NATURE
Comment by ricky chambers — February 23, 2009 @ 5:57 pm
I am assuming you are required to post a bond for your dog due to it’s breed? We don’t write that line of business, but there are agencies that do.
Try a google search for “surety bond dog”.
Comment by Administrator — February 24, 2009 @ 10:49 am
What is a bond without surety? And why would I need one if the business is not open? Do you need one if a will is completed?
Comment by Confused1 — November 1, 2009 @ 12:41 pm
Your question needs some rephrasing. Let me clarify…
A surety, also known as a bonding company is who guarantees your performance, or "bonds" it. These bonds are referred to as surety bonds.
As for court bonds, they are only required when deemed so by the courts, who are typically told what to do by state legislatures.
Comment by Michael Weisbrot — November 1, 2009 @ 1:25 pm
I am thinking of starting a business where translators respond to the scene of a crime and translate info to police officers since there is no officer who speaks the language. Would I need to bond each translator? Any idea how much or what type?
Comment by MGeake — September 19, 2010 @ 10:44 pm
I have never heard of a required bond for translators, as it would be near impossible to guarantee.
Comment by Michael Weisbrot — September 20, 2010 @ 10:51 am
Thank you for your quick response!
Comment by MGeake — September 20, 2010 @ 11:22 am
i am required to post an unemployment bond and yet if someone files for unermployment, i foot the entire bill. what purpose does this bond serve and how much should it be?
Comment by tom — October 19, 2010 @ 1:14 pm
It sounds like the bond is a financial guarantee to ensure you can cover the costs of the unemployment. If you default, the bond kicks in to protect the former employees. However, the bonding company will no doubt require indemnity agreements, meaning that they will come to you to for payment on any surety losses.
This page might help to explain it all better: http://www.jwsuretybonds.com/info/videos/l1-what-…
Comment by Michael Weisbrot — October 20, 2010 @ 9:57 am
my husband is out of jail on a surety bond. he keeps leaving the state. is this legal. if he had permission from te court, wouldn't it show on the court records?
Comment by nanci — November 28, 2010 @ 9:54 am
Nanci, that would be a bail bond. The only type of surety bond we don't handle.
Comment by Michael Weisbrot — November 29, 2010 @ 11:39 am
Why would the owner of a car lot need a surety bond? Especially if the bond is to protect the customer. It sounds like if anyone needs to be protected it would be me, not my customers, since they have my car that I haven't received full payment for yet.
Comment by Jordan — August 22, 2011 @ 5:08 pm
Jordan,
It doesn't always work that way. A lot of times the bonds help to protect the public from fraudulent dealers. I have seen several dealers sell the same car to more than one person.
Comment by Jw Surety Bonds — August 24, 2011 @ 10:39 am
I have supposidly won a contest and they want me to have a surety bond of 1% of the winnings to guarantee the delivery. I'm thinking they are the ones that should have the bond? If it is my winnings, why would I need this?
Comment by paula — September 7, 2011 @ 3:45 pm
Paula,
You are absolutely right. Surety bonds for raffles guarantee that the prize will be awarded and they aren't just selling tickets.
Send them here if they are confused and I'll try to help!
Comment by Michael Weisbrot — September 7, 2011 @ 9:00 pm
I plan to get Surety bond for my 1985 Grand Prix Pontiac and my home how would I start this process please detail your reply thanks
Comment by MARYANN — September 8, 2011 @ 11:55 am
Maryann,
You are in need of a "lost title bond". We don't write them, but many do! Just try a google search and you should be able to apply with an agecy offering them.
Comment by Michael Weisbrot — September 8, 2011 @ 2:27 pm
I'm wondering what the difference is between a surety bond and a notary bond. I already have a notary bond and I'm looking to start a freight broker business. Not sure what that all entails.
Comment by Amanda — September 12, 2011 @ 12:03 pm
A notary bond is a type of surety bond.
As a freight broker you will be in need of a BMC-84 Freight Broker Surety Bond.
To my knowledge, we are the only agency actively writing the freight broker bond right now. You'll find that others do not write it or require 100% collateral.
With us, you can get approved instantly online by our website.
Comment by Michael Weisbrot — September 12, 2011 @ 1:13 pm
The state of MA is requiring me to get a surety bond. I'm trying to claim stocks that the state is holding of my deceased mother. Why is this needed?
Comment by Judi — September 20, 2011 @ 12:54 pm
Judi,
I have heard of such a requirement, but have not ran into one in years. Also, I should mention, this is one of the few surety bond types our agency does not write.
I believe you are being required to post the bond to ensure you are the rightful owner. It is possible anothe relative could surface to say they are due some of the stock ownership as well.
Comment by Michael Weisbrot — September 20, 2011 @ 12:58 pm
I own a Jazzercise Fitness Center and I am wanting to sell a 1 year membership. I live in KY and have been told I need to be bonded. What type of bond do I need to get?
Comment by Jenny — October 21, 2011 @ 9:14 pm
Jenny, you need a health club surety bond. Here are some details on the Kenthucky health club bond you need. Just follow the links to apply and pay for your bond instantly online.
Let me know if you have any questions.
Comment by Michael Weisbrot — October 24, 2011 @ 10:51 am
I own and operate a housecleaning business (no employees). If my customers do not require one of me, do I need a surety bond covering theft? What would it accomplish? Especially since I know there would not BE theft, but I guess there is always the possibility of an accusation. As a well-established business, I am starting to think that the bond we have maintained is now unnecessary.
Comment by Joe — October 24, 2011 @ 6:35 pm
Joe,
Just to clarify…since no one if requiring the bond of you, it is NOT a surety bond. You have a fidelity bond in place, a type of insurance that should really be called "fidelity insurance" to lessen confusion.
Fidelity policies usually only pay out if there is a conviction. Therefore, I think the only thing it is providing it peace of mind to your clientel.
Comment by Michael Weisbrot — October 25, 2011 @ 9:19 am
Hi,
I am thinking of opening a Hard Money Lending Business. What bond would I need for the borrowers? Can I get such a bond?
Comment by Chris — November 7, 2011 @ 7:47 pm
Chris,
That type of loan is guaranteed by real estate assets, no? Regardless, bonding companies won't have interest in making that kind of guarantee.
There may however be a bond requirement for your company by the states you choose to operate in. The bond would be in place to protect your clients from your company, not the other way around.
Let me know what states you plan to operate in and we can help guide you.
Comment by Michael Weisbrot — November 8, 2011 @ 11:07 am
I'm starting a modeling/talent agency in the state of Florida, no employees, just ICs. As per license requirements in the state for a talent agency, it says a $5K surety bond is needed. As I'm researching, it seems these are most common for contractor/commercial roles, where a 'job' could take weeks/months, where my services are provided in a matter of a day or two. Is this $5K bond really necessary, and do I have to pony up $5K annually or one time? Thanks!
Comment by Vicki — November 10, 2011 @ 10:14 pm
Hi Vicki,
Before you get started, you may want to check with the to see if you are required to post the bond or not. Bond premiums are always fully earned the first year, which means no refunds on cancelled bonds so it is important to ensure you are required to obtain the bond.
The Florida Talent Agency Bond will not require you to post $5,000 cash. You would pay a percentage of the bond amount as your annual premium.
Our website will actually allow you to get approved and pay online within minutes.
Comment by Michael Weisbrot — November 11, 2011 @ 10:12 am
I already have a surety bond for my father's estate as executor…why do I need to renew it every year??
Comment by Leslie — January 18, 2012 @ 7:56 pm
The bond guarantees your faithful execution of the estate. The surety incurs liability each year that you are handling the estate. Therefore, new premium is required each year.
Comment by Michael Weisbrot — January 19, 2012 @ 10:30 am