The Surety Bond Claims Process

Surety bond claims are as widely varied as the myriad of surety bond types required throughout the U.S. They can be as simple as a parking ticket, or as complex as the college football rankings or this year's delegate counts.

What Should You Do If a Claim is Filed on Your Bond?

The claim process ultimately self-adjusts according to the individual case, but this article should provide some general help and basic orientation. The most important aspects involve communications: immediate, concise, thorough and frequent contact with surety claims personnel; the complete disclosure of information; and continuous, real-time status updates. Surety claims persons are expected and required to treat all parties fairly, ethically, thoroughly and within legally prescribed time frames and in a courteous, professional manner.

If a claim is filed on your bond, give them all the information they request, in addition to what you would like them to have, and do it as soon as possible. Never be afraid to ask questions throughout the process. Like you many, if not most surety claims professionals had never heard of this obscure subject matter until shortly before they got involved with it. So, they are typically tolerant of what you may feel are "stupid" questions.

Search the internet for situations similar to your own. Talk to your peers to the extent possible. Browse and ask questions here, you may find an answer if you seek only basic information (you can also take a look at our frequently asked questions). Oftentimes, the bond obligee, agent, broker or underwriter can help as well, especially with finding the correct claims contact at the surety. If a statutory bond is involved, often the governmental entity requiring the bond can assist.

Depending on the ramifications of the outcome of the claim, you may need to obtain highly-specialized surety claims experts, e.g., legal, accounting or construction consultants. This may not be the time for old buddy who went to law school, but to get on the search engines. Most find that this is money well spent. Look at it this way: Four Minute Oil Change is not the place for the 90,000 mile tune-up, no matter how well-intentioned. Sometimes, you have to go back to the dealer, who put the thing together. If you are facing a tough situation, you should be aware that others involved may consider it routine. Prepare accordingly.

Surety Bond Claim Resources

There is a fair amount of printed matter available on the law of surety claims, but much of it concerns complex construction and is prepared for the benefit of the surety itself. These books tend to be weighty tomes, nationwide in scope, written by and for specialists. But they may also be very helpful orienting the layperson and should not be overlooked. Despite the fact these are law books mostly written by surety attorneys, these American Bar Association (ABA) publications - scroll down to "Fidelity and Surety Law" - may be worth your while.

If your surety claim involves highly technical construction issues, in addition to legal ones, you will have to search accordingly. For example, often construction contract bond claims may involve liquidated damages (LD) due to delays. Books like: Construction Scheduling: Preparation, Liability and Claims by Wickwire et al, Guide to Construction Contract Surety Claims Schwartzkopf et al., are excellent points of reference. Internet searches within bookseller sites of may yield similar titles. If you have other questions like "What is a surety bond?", you can find all the information you need in our FAQ section.

Unfortunately, surety bond claims happen. Typically, they are not painless, nor are they insurmountable. The above resources can give some guidance and a rough template of how to proceed. Keep in mind, it's crucial that you work with an expert in the surety industry. Learn more about how to ensure you choose the proper bond company.


73 Comments

Dani
June 28, 2017

In reply to by eweisbrot

Oh okay, thank you. I do not know that information yet, but I will ask our investigator. I'm just wondering if it's worth claiming those things and if the bond company will take me seriously. It seems like from your site, although bond companies are suppose to be neutral, there are a lot of resources and help for boned companies but not for those "little people" who wish to file a claim.

Dani
June 28, 2017

In reply to by eweisbrot

Thank you for your help! I think I read that we would need to show proof of our losses in dollar amounts. Is this true? Our losses like, negative credit reporting and possible negative repercussions from our job don't have receipts. How would you claim this if you were in our shoes?

Brad
August 1, 2017

In reply to by admin

What is the process of locating the Surety Bonding Company?

Elena
January 13, 2018

In reply to by admin

Our customer filed bankruptcy and therefore failed to pay us as a subcontractor We submitted a claim to Western Surity by email I received the email confirming the receiving the notice of claim and supporting documentation 60 days ago I have been asking for any updates since However I always receive the same response : nothing to update Is there any time period for reserving the payment?

Eric Weisbrot
January 15, 2018

In reply to by Elena

Hey Elena,

I do not know what the limitations are for response, but I would continue to request updates on a regular basis from them and ask when is a reasonable time frame for a response.

Dani
June 28, 2017

In reply to by admin

Hello! You're website is so helpful! I hope you can answer my question. I have filed a claim with MD MVA because during the process of getting a lease, we traded in our car and the dealer never paid our loan of causing a negative report on our credit by the lender of the trade which affects our security clearances for our employment. We also found out the dealer sold our trade before we were ever able to get approved for financing. Because of the unlawful business practices of the dealer, we rescinded our contract. They returned our car with 1000 miles over when the original amount we traded it in with and also removed the tint from our windows. We have know idea what mechanical condition our car is in because they sold it. The investigator may release their bond to us if the AG approves.

If this happens, would we be able to claim the value of our trade and new lease we had to trade in because of their unlawful business practices, our salaries because we haven't been advised if we'll be put on leave until our credit is straightened out, time off work, legal fees etc. ?

Eric Weisbrot
June 28, 2017

In reply to by admin

Hey Dani,

While it can be the case the a surety company may not act quickly or in your best interest when it comes to a claim, that's not always going to be the case; and when we speak of this on our site we are actually referring to the one with the bond (rather than the one filing the claim). You can also try filing a report to the BBB as well.

Dani
June 28, 2017

In reply to by admin

The Bond Company is National Grange Mutual Insurance Company

Dani
June 28, 2017

In reply to by admin

Thank you for your help!

Eric Weisbrot
June 28, 2017

In reply to by Dani

No problem...good luck!

Eric Weisbrot
August 1, 2017

In reply to by admin

You should be able to look up the bond policy information on the state licensing department website that required the bond. If you can't find the info on the state site, your best bet would be to contact the state to get that info.

Brad
August 1, 2017

In reply to by admin

thanks. Ill do that.

Eric Weisbrot
August 2, 2017

In reply to by Brad

Good luck, Brad.

Brandy Jennings
November 2, 2018

In reply to by admin

I purchased a car August 14th, Washington law says the dealer has 45 days to provide title and registration. It’s been over 2.5 months. I was given a paper that you would keep in glove box by the dealer, with a sharpie pen written expiration date and a piece of tape and
Told to put it in my window for a trip permit. I immediately went to Dept of licensing and they laughed and said I couldn’t use that and sold me a trip permit. I paid $30 for 3 days. They also used they temp registration that was issued to me to see if they even applied for title and license. They haven’t. So I’ve since purchased all the trip permits my state allows and still have to registration. The Dept of licensing dealer investigator told the dealer to unwind the sale if he couldn’t get a title by October 19th. I’m still unable to drive the vehicle. Also, vehicle history reports I ran after I purchased it shows a crushed vehicle title from Missouri in 2016. That’s where the previous owner moved from. They transferred to Oregon in August and Missouri branded it in October of 2016. I think it was a flood damaged vehicle because it has had nothing but problems since day 1. So the dealer stroll won’t unwind the sale. I filed a claim against the bond company. How long is this process? I have a vehicle I can’t even drive and am about to lose my job as I work 45 mins from home in a rural area with no bus line. Also the dealer changed their name and phone number since this issue started.

Eric Weisbrot
November 5, 2018

In reply to by Brandy Jennings

Hey Brandy,

I'm sorry to hear about your situation. The claim process time frame can vary from company to company. Is your bond through us? We specialize in handling claims quickly, and fairly.

If not, I recommend that you contact the surety claims department for more information.

Eric Weisbrot
June 11, 2014

In reply to by admin

Hey Michael,

You'll need to contact the surety company who wrote the bond to make a claim.

Let me know if you have any other questions.

Eric Weisbrot
June 13, 2014

In reply to by admin

Hey Dalu,

Yes, you will want to contact the Western Surety Company claims department and file the claim with them. Their number is 800-262-2000.

Eric Weisbrot
July 24, 2014

In reply to by admin

Hey Amy,

Sorry to hear about all of your trouble.

Yes, you'll want to include everything that you have filed in small claims court to strengthen your case. You'll need to contact Western Surety's claims department and they will help you with the claim process.

Let me know if you have any other questions.

Patrick
October 5, 2014

In reply to by admin

A municipality is opening bids for bids shortly where they will choose a contractor to horizontal drill a 20 inch line within feet of historic houses. I don't think they've considered the fragile nature of old buildings in spite of a "proper" Section 106 review. My small company restores/develops these historic buildings for light commercial use. If there is damage to my old building, can I, how do I, and what bond am I looking at to file a claim against if there is damage to the old structures?

Eric Weisbrot
October 6, 2014

In reply to by admin

Hey Patrick,

The bond guarantees the performance of a contract. It will not protect outside properties from damage. Your best bet is to discuss this element with your insurance carrier.

Eric Weisbrot
March 15, 2021

In reply to by admin

Hey Johnnie,

I'm sorry to hear about your son.

I'm not sure what the context is of your question about a surcharge. Did you obtain the bond directly through Western Surety, or did you get a bond through a bond agency?

Johnnie Hollis
March 15, 2021

In reply to by admin

What is a surcharge? I filed a claim against Western surety bond company that my Son opened up and now He is deceased and I can prove He did not divide the money 3 ways.

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