Even though you may need a surety bond, you may not know exactly what that is. We don’t expect you to have all the answers. That’s why we are the experts. Most of our clients are required by state or federal law to obtain a surety bond for licensing in a number of industries.
We know you have enough to do running your business, so we’ve created a helpful guide. If you still have questions, please feel free to call us or email us.
What is a surety bond?
A surety bond is somewhat like a professional co-signer. The surety is essentially promising to the agency requiring the bond that the you (principal) will adhere to the rules being guaranteed by the bond.
The product itself is different than insurance. A surety bond is a 3 party arrangement between the principal, obligee, and surety company. The principal is the person or entity qualifying for the bond and responsible for performing the work. The obligee is person or entity being protected by the bond. And the surety company issues the bond, and has to pay out to the obligee in the event of a valid claim.
Unlike insurance, if the surety company pays out on a bond, the principal is obligated to pay the surety company back in full.
How much will this cost me?
Our goal to find you the lowest price for the type of bond you need and as quickly as possible. There are bonds that only require a short application process and the fee is typically between one and three percent. Other bonds require a credit history check and the cost varies depending on the cost incurred and other factors.
How easy is the process and how long will it take to get approved?
Our goal is to expedite your application and get you your bond as quickly as possible. The Surety1 process is a simple one and we are available to assist you at any time:
- Please submit an application using our easy online system.
- Your bond fees are quoted within one to two business days by email and telephone.
- You provide payment for your bond. We accept all major credit cards. Depending on the bond type, we will ask you to sign an agreement as required by law.
- We mail you your bond ASAP. You have a choice of regular or expedited delivery.
Depending on the type of bond you need, it can take anywhere from 10 minutes to two business days in order to obtain a firm quote, but we will do our best to provide you with the fastest service possible.
What if my credit score is challenged?
If you are currently rebuilding your credit, we can work with you to get you the surety bond you need so you can continue to build equity in your business. Surety1 works with many secondary surety markets to get you the best possible quote. Depending on the state and type of bond you are requesting, there are many surety bonds that aren’t based on your personal credit score. Secondary surety market rates usually range from five to 24 percent of the bond amount.
What type of bond do I need?
We’ll help you determine the type of bond that serves your purposes. We’ve provided more detailed information about the various types of surety bonds on some of our other pages. Contact us to learn more.