Types of Surety Bonds
Contract bonds
Contract bonds offer assurance by providing proof of trustworthiness when entering into a contract. When a principal holds a surety bond, it guarantees to the obligee that the principal will fulfill the contractual obligations.
Judicial bonds
Court bonds are issued during legal proceedings. Both plaintiffs and defendants may be required to obtain a surety bond to protect the opposing party from potential financial losses resulting from a judge’s ruling.
Probate bonds
Probate bonds are used in probate or surrogates court for individuals appointed as trustees, guardians, executors, or administrators. They ensure the principal commits to a fiduciary duty—honesty, loyalty, and good faith—in carrying out their responsibilities.
Commercial bonds
Various commercial surety bonds, mandated by legislation or other entities, protect the public, prevent financial losses, and guard against fraud and unethical business practices.
What is a surety bond?
A surety bond is a three-way agreement where a surety pledges to pay if a principal defaults on their commitment to an obligee.
What's the process to get bonded?
Choose the proper bond by identifying the most beneficial type for your business, or an entity may have requested a bond from you. Click below to find your bond.
If I have bad credit can I still get bonded?
Yes. The type of bond you request determines its riskiness. Some bonds require collateral, like Mechanic’s Lien Release Bonds.
It’s crucial to choose a specialized bonding company. Insurance companies that offer bonds specialize in property and casualty claims, not bonding services. Opt for a licensed, reputable company to find the best bond solutions.
Surety bond prices vary based on coverage, credit history, and agreement stipulations. Rates can change over time.
The underwriter or bonding agent assesses risk and approves applications, along with premium costs. If an agency advertises a set bond cost, it’s usually the lowest possible rate, not the actual amount you’ll pay.
What are my Obligations?
Anticipate paying the annual premium for purchasing and maintaining a bond.
When applying for a surety bond, you’ll sign an indemnity agreement, outlining your financial obligation to repay losses to the surety if a claim is made.
Surety companies avoid at-risk applicants to minimize the likelihood of unpaid losses. Background and credit checks are crucial for certain types of bonds.
Why us?
As a leading insurance services agency, we promptly address our customers’ needs and consistently receive recognition from our clients for our exceptional quality and service. We are committed to sustainable growth and profitability. We take pride in our contributions to the insurance industry.