A surety bond is a three-party agreement. The obligee requires the principal to buy the bond and honor its terms. The surety company financially backs the bond if the principal violates those terms. If the surety company pays out any claims made on the bond, the principal must reimburse the surety.
The cost of your surety bond will vary depending on the type of bond and the amount of bond coverage you need. Surety bond premiums usually range from 1-15% of the total bond amount. For example, if you get quoted a 2% rate on a $50,000 bond, you will pay $1,000 for your surety bond.
You can get a surety bond from an approved surety agency that is licensed in your state. When you contact a surety agency, you should know the kind of bond you need and its amount. Most agencies will know the bond type and amount your industry requires, but being prepared speeds up the bonding process.
Yes, surety bond premiums vary by jurisdiction since different government agencies have set their own regulations for certain bond types. The needed bond amount directly affects premiums charged by surety providers because they calculate base fees as a percentage of this amount.
For example, depending on the state, county and city in which they work, notaries public typically need either a $5,000 bond or a $10,000 bond. It follows that a $10,000 notary bond will cost a principal more than a $5,000 one would. SuretyBonds.com provides bonding opportunities in all 50 states and can offer competitive rates no matter the jurisdiction, specific bond type, or needed bond amount.
