If your clients need reassurance that your business will follow through on its commitments, you might need a surety bond.
A surety bond is an agreement that promises you will follow through with your commitments. If you fail to follow through on your commitments, the surety bond is there to protect your clients.
You’ve just been told, “you need to get a surety bond.” And then you wonder, “how do I do that?”
If this is you, then you are in the right place. Here are the six steps you need to take to get a surety bond:
Short on time? Read our How To Get A Surety Bond FAQ.
**Update: May 2018: We are transitioning from Surety OneClick to a new software solution. We have transitioned our Bond Cost Calculator to Agency Multiplied. For questions, please call our office at 866.722.9239**
Click on each professional to learn more about what bonds he/she may need.
Surety bonds can be confusing which is why we’ve compiled a list of surety bond frequently asked questions plus their answers. Don’t see your question here? Ask it in the comment section!
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If you have been told you need a surety bond for your small business, you might confused about what you need to get.
There are 25,000 different types of surety bonds so it is impossible to speak to all of them, but here are five types of bonds that various small businesses might need before they can open their business doors.
As with all surety bonds, the does not protect the business. Surety bonds protects the customers of the business.
If a customer feels they were wronged, they can make a claim against company’s surety bond.
If you own a small business, you’ve certainly heard of the impact that a single missed payment or unfulfilled obligation can have on your business.
Hopefully, you haven’t experienced this first hand. To protect yourself and your customers, you can use surety bonds or letters of credit to manage these risks.
While there are similarities between surety bonds and letters of credit (also known as ILOCs or Irrevocable Line of Credit), there are significant differences between them. Both can be used as a risk management system, but only one of them can save you money.
A surety bond is a three-party agreement between a Principal, an Obligee, and a Surety.
In short, a surety bond is a contract that guarantees you will fulfill your tasks and obligations.
If the you (the principal) fails to fulfill your obligations, the surety company will step in. In the end, you remains liable for the original obligation and must repay the surety company for any money they paid out.
In order to make this arrangement clear and legal, surety companies require that principals sign an Indemnity Agreement.
Surety bonds are confusing. Don’t believe me? Ask the person next to you “What is a surety bond?”
While surety bonds are often misunderstood to be insurance policies, they are not. While there are similarities, there are differences too. Here are 5 differences between surety bonds and insurance.
Short on time? Read our Surety Bond Frequently Asked Questions.
The short answer is: a document that continues the life of the original surety bond.
Not sure what a surety bond is? Read our What Is A Surety Bond post.
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