Surety bond Definition
A surety bond is a form of insurance, but it is more of an reverse insurance policy. If any claim occurs the principal will have to pay the surety bonding company back. There are no deductibles for Surety bonds unlike traditional insurance. If you are applying for a license bond the state or federal government has set the bond amount. A surety bond has three parts, Principal, obligee and the surety company. The obligee decides the bond form language derived from state or federal statutes. For the most current and accurate bond form always consult with the obligee that is requesting the bond.
Surety Bond Underwriting
Surety bonds are underwriting differently than insurance policies. The underwriting of bonds is similar to underwriting loans. The surety will review your financial stability to determine if and how much surety credit they will extend.
Surety bond cost
What is a GIA?
What is a bond form?
A bond form is what the bond will be issued on. You can obtain your copy of your bond form needed from the obligee. Normally when you apply for your license a copy of the form is included in your licensing packet.
How long does it take to get approved?
Surety bond Markets
You can learn more about bonding by visiting our surety bond blog. Find out the in’s and out’s of the surety bond business. Keep up to date with current surety bond news and find out new bond requirements.
This is not legal advice but for information purposes only