I need a surety bond, and I don’t know what type I need? An easy way for you to find out what type of bond you need, besides calling us, is to call the obligee. The Obligee will have the direct answer since they are the entity that is requiring to carrier the bond. Normally if you are applying for a license it is a State Department. Permit may be needed by the state as well, but most of the time it is the city whom needs them. It is also helpful to check your application that must be returned to the state. The licensing packet usually has a copy of the bond form and its requirements.
How much will my Surety Bond Cost?
The Cost of your surety bond depends. The Rate is determined by State, type of Bond, you credit, your personal financials, business financials and risk. All scenarios are different so some of the above listed information may be required or not. Some bonds like, notary bonds are not based on credit or financials. Notary bonds simply have a filled rate, were other bonds have a sliding scale. The reason for that is unlike MVD bonds , contractor license bonds, and Mortgage broker bonds, notary bonds claim ratio is low for now. So the cost of the bond may start out at a 2% but the rate can jump up to 25% depending on your scenario.
Why do I Need a surety bond?
A surety bond does not protect you or your business, it protects the obligee. The obligee requires Surety bonds to protect them from, monetary compensation, breach of contract, payment of certain taxes, fraud and whatever else they have weaved into the bond form. Unlike insurance surety bonds are a requirement and must be met before you can start or continue operating your business.