You only need a surety bond if you're being required to obtain one. There are hundreds of surety bond requirements across the country for varying reasons and occupations including auto dealer bonds, contractor license bonds, mortgage broker bond, and freight broker bonds.
Surety bonds work as a type of insurance policy for the party requiring the bond, typically a government agency, and are intended to protect the government and its citizens from certain losses. A surety bond is a binding contract between three different parties:
The surety bond provides a guarantee to the obligee that the principal will conduct themselves per the terms outlined in the Surety Bond.
If you fail to abide by the terms laid out in the bond, the obligee can make a claim on the bond. The principal is expected to pay every expense of the claim, including legal costs.
By providing you with a Surety Bond, the surety company is saying that they believe your finances are strong enough to cover any claims. Because of this, bond applications undergo a careful underwriting process that examines the potential that you may cause a claim, as well as your ability to repay claims.
It’s essential that you carefully meet all of the obligee’s expectations as set forth in the bond to avoid claims because ultimately, those claims are paid out of your pocket.
The cost of your bond depends on the amount you are required to be bonded for. Your cost will be a small percentage of the overall bond amount. Our Surety Bond experts can provide you an exact quote based on your specific situation and your obligee’s requirements.
At Agile, we have partnered with the nation’s largest surety bond producers. In many cases, getting you bonded same day. Simply fill out our online application and one of our experienced Surety Bond professionals will be in touch with you within one business day.