Frequently Asked Questions

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Bonding Process

• What is the process to get a surety bond?

• First, you need to apply online where you can get an instant approval. Once you're approved, you will need to sign the indemnity agreement, send payment and we will ship the bond to you.

  Check out our video to learn more about the surety bond process.

• How long does it take to get a bond?

• We provide instant online approvals for license & permit and miscellaneous bonds. However, we do not offer instant approvals for contract or court bonds, as the underwriting process generally involves a more extensive review of the applicant.

• Why do you need my spouse's information?

• Your marriage legally joined your assets with your spouse. Your spouse is required to sign the indemnity agreement on your behalf, just as you are, to confirm they agree to pledge your shared assets and reimburse the surety for any potential claims. Bonding companies also use spousal indemnification to get an indication of your character. If your spouse will not guarantee you, the bonding company also will not.

• What is a blank surety bond form and where do I get one?

• It is a blank copy of the bond required by the obligee, and it states exactly what the bond guarantees. We have most of the industry standard forms on file. If we do not have your bond form, you will need to obtain it from the obligee.





Claims

• What if I have a false bond claim?

• Contact the claims department of the surety company who wrote your bond. The surety will investigate and determine whether the claim is false.

  Watch our video to learn more about the claim process

• How can I avoid bond claims?

• You must abide by the terms of the bond and follow the obligee's regulations.

  Watch our video and find out how you can avoid claims on your bond.

• What good is a bond if I have to pay for claims?

• A bond is a form of credit to you, not insurance. When a surety extends credit to you with a bond, they are vouching that you will abide by the terms of the bond. If you don't, you are responsible for any claims triggered as a result of not abiding by the bond terms.

  Watch our video to learn more about bond claims.





Cost

• How much does a surety bond cost?

• Costs vary greatly depending on the applicant, size, and type of the surety bond. Using our tool you can get a quick estimate, or you can visit our application center and get a firm quote.

  Watch our video to learn about general bond pricing or, check out our other video to find out what bid and performance bonds cost.

• How do you get the best rate?

• Industry experience, strong business and personal financials will lower rates. However, this will vary greatly by bond type.

  For detailed information on getting the best rate, watch our video "How To Get The Lowest Rate On License & Permit Bonds" or "How To Get The Lowest Contract Bond Rates".

• Do I pay you the full bond amount?

• No. Generally, you will pay a percentage of the bond amount, which is based on your financial strength. However, some contract bonds require you to pay a percentage of the full contract amount.

  You can get a quick estimate or apply online and get a firm quote.

• How is my bond premium calculated?

• The bond size and the risk you pose to the surety are used. Generally, sureties determine your risk by reviewing your personal credit, business/personal financials and industry experience. These items are used to get an indication of your potential to trigger a bond claim.

  Check out our video for additional information about claims.





Definitions

• What is a surety bond?

• It is a guarantee. What the surety bond guarantees varies depending on the bond type as there are hundreds of bonds for many different occupations. They are sometimes referred to as a "security bond", which is an incorrect name.

  For more details, watch our video that answers the question, "what are surety bonds?"

• What is an obligee?

• It is the entity that requires a bond of you in order to operate legally.

  Check out our video for more detailed information on obligees.

• What is a fidelity bond?

• It is an insurance product that protects against employee dishonesty such as embezzlement, property damage and theft. There are different types of fidelity bonds that provide various forms of protection. Fidelity bonds are insurance and are generally optional to obtain, while surety bonds are not.

  What type of business bonding insurance do you need? Find out by watching our bonding insurance video.





General

• How do surety bonds work?

• There are three parties involved; the principal (you), the obligee, which requires the bond, and the surety company, which is who guarantees you by providing the bond. You must pay a bond premium to the surety company in exchange for the bond (guarantee) they provide you. A claim can arise if you do not abide by the terms of the bond. The surety will investigate the claim. If the claim is valid the surety will pay it, but will come to you for reimbursement.

  Check out our video "Does Surety Bond Insurance Protect You?" and "Why You Need To Avoid Claims At All Costs" to learn more about how bonds work.

• Why do I need a surety bond?

• The obligee requires a bond because it guarantees you will follow their laws and regulations. It is protection for the public, not you.

  Watch our video to learn more about why you need a bond.

• I'm an insurance broker. Will you work with me?

• Yes! You can sign up as a broker on our website and begin submitting applications now.

• Can I get a surety bond with bad credit?

• Yes. We have exclusive high risk bond markets for license & permit bonds and can usually get you approved regardless of credit issues. Most people can also get approved for fidelity bonds regardless of credit.

  We may be able to approve you for a court bond with bad credit, but this varies on the type and your financial situation. For contract bonds, larger contractors with poor credit can be approved with strong CPA prepared business financials. However, smaller contract accounts will not be able to obtain a bond as there are no high risk markets.

  Watch our video to learn how to save money on a bad credit bond.

• How do I know if I need a bond?

• With surety bonds, the obligee (the entity requiring the bond) will determine whether a bond is required. Bond requirements vary greatly by the obligee and your occupation.

  Fidelity bonds are insurance and are usually optional to obtain. However, they are sometimes required along with a surety bond to operate legally.