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Frequently Asked Questions

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Bond FAQ's


  • How much does a surety bond cost?
  • Costs vary greatly depending on the applicant, surety bond size and type. 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 personal credit, business and personal financials will help lower bond 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 strongly 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 establishing the line of work, 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 for not fulfilling your obligations.

    Check out our video for additional information about claims.

  • General

  • How do surety bonds work?
  • There are three parties involved; the bond holder (the principal), the entity requiring the bond (the obligee) and the surety company, which is who provides the bond guaranteeing obligations will be fulfilled. A bond premium is paid to the surety company in exchange for the bond they provide. A claim can arise if obligations are not satisfied. The surety will investigate the claim. If the claim is valid the surety will pay it, but will come to the bond holder 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 fulfill your obligations. It is protection for the public, not you.

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

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

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

  • 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.

  • Definitions

  • What is a surety bond?
  • It is a guarantee that obligations will be fulfilled. 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 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 required.

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

  • 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 fulfill all obligations.

    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.

Franco Lee (Sun, 16 Oct 2011 11:52:47 -0400): gd introduction of surety bond.Patti Gardocki Schultz (Tue, 10 Jan 2012 15:57:53 -0500): What if a person who is the executor of the estate is unable to afford the surety no.d.Clayton Arnett (Mon, 06 Feb 2012 19:11:20 -0500): you have to go to jail,, and bail out..Alexander Constantine Holmburg (Tue, 02 Oct 2012 11:15:16 -0400): What does it mean by "claim." Could you fully explain that term to me?Todd Anderson (Mon, 15 Oct 2012 09:20:20 -0400): What type of bond is required when a shortsale residential property has a tenant and the attorny wants a guar. of condition from the closing date until the date the other party moves in?Jean Pence (Wed, 05 Dec 2012 14:12:20 -0500): can two companies go together with their resourses to get a large surety bond for a government contract.James Earles (Tue, 25 Dec 2012 09:14:48 -0500): Can you go out of the county onbond in florida? Also can a person visit someone in jail while on bond?Clayton Arnett (Tue, 25 Dec 2012 19:47:46 -0500): traveling is between you and your bond co,, not likely,,visiting not in hawaii.. Cindy Gagnier Criner (Sun, 24 Feb 2013 12:30:48 -0500): What is the legal obligation of a co-signor to a surety bond? I have a 23 year old neice who is in need of the surety bond for guardianship of her 14 year old twin siblings. Does this go on credit report or on the title of my house? I want to help but I am in the middle of building another house and can't have anything go on the tile fo my primary residence. I know with bail bonds, it goes not you titile? (Tue, 23 Apr 2013 01:31:16 -0400): I have found this site - it is very useful in your research to learn more about the program - the best part about this company is that they actually compare multiple lenders - saved me a lot of time and money. http://www.reversemortgagelendersdirect.com/ (Tue, 23 Apr 2013 01:32:48 -0400): I have found this site - it is very useful in your research to learn more about the program - the best part about this company is that they actually compare multiple lenders - saved me a lot of time and money. http://www.reversemortgagelendersdirect.com/Kathy Clemmons (Sat, 11 May 2013 09:57:50 -0400): If you close your company, how do you retrieve the money you put up with bonding companySusie Smith Onstott (Wed, 04 Sep 2013 07:00:19 -0400): if you answered "yes" to declared bankruptcy and it was Chapter 7, then do I check No on creditors satisfied?Pam Spiezio (Fri, 22 Nov 2013 19:51:50 -0500): What happens if the person dies who purchased the bond? JW Surety Bonds (Mon, 25 Nov 2013 10:29:51 -0500): Pam, Surety bonds are non-transferable. If the business will remain in operation but with a different owner, a new bond will be required. If the bond is in its first year, the premium is nonrefundable; but if in the second or subsequent year, a refund could be prorated. I hope this answers your question. If you need additional information, please feel free to contact us. 'Renee Adams (Fri, 27 Dec 2013 17:28:40 -0500): Can u declare bankruptcy on a owed bond, in Ohio?JW Surety Bonds (Thu, 02 Jan 2014 08:54:45 -0500): Renee, Thank you for contacting us, and I'm sorry for the delay in response. In order to answer your question, I need to ask what type of bond are you referring to? Alsee Mccray (Sat, 08 Feb 2014 23:56:22 -0500): if the niece is 23 how can her twin be only 14? you didnt phrase that right :) Derrick ZeektheManager Gamble (Tue, 11 Feb 2014 00:21:50 -0500): It's say the 23 year old's 14 year old twin Siblings.. Phrased right .. Read better lol Ben Claire Fortun (Sun, 16 Feb 2014 20:42:08 -0500): Please tell me about bond needed to get a seller of travel registration. Thanks.JW Surety Bonds (Mon, 17 Feb 2014 12:18:26 -0500): Ben, Probably the best place to get started is to check out our website at http://www.jwsuretybonds.com/surety-bonds/commercial-bonds/seller_of_travel_bond.htm If you need help getting bonded, you can apply directly on our website and receive a quote at https://www.jwsuretybonds.com/protools.htm. Please let us know if you need further assistance. Katie Kluever (Thu, 06 Mar 2014 16:56:55 -0500): If I have a surety bond in my name for a car lot, is that reported similar to the way a loan would be reported on my credit report?JW Surety Bonds (Mon, 10 Mar 2014 14:51:07 -0400): Katie, No, surety bonds do not show up on your credit report. Although surety bonds are sometimes referred to as a form of credit to the business owner, this means the surety company will pay a valid claim on the principal's behalf, but will look to that individual for reimbursement. If you need help getting bonded, please let us know!Al Lil-Money Session (Sun, 06 Apr 2014 18:04:46 -0400): If I'm bonded already & not started my business yet, can I get my money refunded back to me from the bonding company?JW Surety Bonds (Mon, 07 Apr 2014 10:24:06 -0400): Hello Al, Although first year premiums are fully earned and not refundable, it would be best to contact your agent directly to answer this question. Did you purchase your bond through our agency?Terri Diaz (Wed, 16 Apr 2014 04:58:11 -0400): When will I get my money refundedJW Surety Bonds (Wed, 16 Apr 2014 13:38:06 -0400): Terri, I would need to check with your agent to answer this question. May I ask the name of your company? Thank you.Kriss Tan (Mon, 21 Apr 2014 23:54:17 -0400): How much is the surety bond of 16,000 pesos stafa case.?i have been paying 8,000 pesos per yr. Is it correct?JW Surety Bonds (Tue, 22 Apr 2014 10:14:31 -0400): Kriss, Is this bond something you purchase for use in the Phillipines? If so, I'm sorry but we do not sell bonds outside of the U.S.

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