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JW Surety Bonds >> Learn About Surety Bonds >> Frequently Asked Questions (Specific) >> Why can't you give me a quote over the phone?

Why can't you give me a quote over the phone?

Bond premium rates are based on how much of a risk the bonding company believes your unique company is. The rates are based on numerous different factors including, but not limited to:

• Business financials
• Personal financials of the owner(s)
• Personal credit of the owner(s)
• Specific bond form to be used
• Type of business you are in
• State you are operating in

Can't I just get a ballpark figure?

Well yes and no. An agent will be able to let you know the ranges of your particular bond, but you might not be happy with how large the actual ballpark is.

Commercial bonds such as license bonds can vary anywhere from 1% to 15% of the bond amount (sometimes even higher in rare cases!) with collateral possibly required.

Contract bonds such as bid or performance bonds are usually anywhere from 1% to 3.5%. In general if the surety must apply a rate over 3.5% you are usually just deemed "not bondable", however there are some rare cases where a riskier bond can still be written for a higher rate.

But I received a quote from another agency on the phone

Some agencies simply tell the lowest tier rating to clients ask for a quote over the phone. Unfortunately, this does not mean your surety bond is approved at that rate. In fact, most companies are not approved at the lowest tier ratings, yet agencies continue to deceive people by implying that the rate applies to all who apply. If someone gives you a verbal quote, be sure to get it in writing, otherwise you may hear, "You weren't approved at that rate..."

The only way to obtain a quote (or even a ballpark figure that can be made use of) is to apply. We are in no way trying to complicate things, but are always keeping the surety process as simple as possible.