A surety bond
is a contract between your business, a bond company, and the party requiring the bond. It shows your customers that your business has a solid financial history and a reputation for following through.
To get a surety bond in Maryland, follow the steps below.
How to get a Surety Bond in Maryland
Step #1: Contact Surety Bond Company and Apply for Bond
You can get a surety bond from an insurance agency or a surety bond agency. Many people choose to get their Marland bond through a surety bond agency because of better rates.
Many surety bond companies allow you to apply online for your bond.
Step #2: Get Evaluated and Get Your Rate
Once you’ve submitted your surety bond application, an underwriter will evaluate your application.
Since surety bonds are all about your follow-through, the underwriter will want to see that you are not at risk for non-completion of a project or a business.
The underwriter will evaluate the risk of bonding you, and provide you with your surety bond rate.
That’s right; you do not need to pay the full bond amount to get bonded. You will just pay a percentage of the total amount.
The chart below shows ball-park figures for what you might pay for your Maryland surety bond.
Step #3: Pay for Bond
The last step is to pay for your bond. You will also need to sign an indemnity agreement
before you can get your bond.
Some bonds are considered “instant issue” bonds which means you can print them from your own computer as soon as your purchase.
Other bonds will need to be mailed to you.