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Are you interested in applying for a surety bond, performance bond, or fidelity bond? We have applications ready for download or you may speak to one of our trained representatives to find out which application suits your needs best. Click here for more information. |
Obtaining a Surety Bond : How to Obtain a Surety Bond
ChecklistA basic checklist of required items is usually provided to the applicant at initial contact. It is then up to the applicant to put together all items for the underwriters to review. All information needs to be legible and correctly presented or the process may be delayed pending questions and clarification. Small BondsMost small surety bonds (under $25,000) are fairly easy to obtain for principals with good credit. These bonds usually consist of license or permit bonds. A simple application is completed by the principal and submitted to a bonding agency such as Viking Bond Service. The bonding agency then checks the client’s credit and provides a quote, usually for a one year term (which is renewable annually). Most of these bonds can be issued instantly upon payment of premium and receipt of originally signed application. These bonds are issued on-site in the bond agency’s office in most cases.
Miscellaneous Bonds and AmountsIt is always a good idea to check with your bonding agent prior to completing any forms. This is because there are many odd types of bonds carrying specific requirements, and your bond agent can usually save you time by letting you know what items are needed (or not needed) to proceed. |
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One
of the most, if not the most important item to provide to your
bond agent (unless a copy is on file) is the Bond Form. The bond
form is just that; the form on which the bond will be written.
The bond form is itself a blank contract essentially “waiting” for
the three parties to be added. This is the contract to which the
surety will be held so it is imperative that a clean, clear, and
current copy of the bond form in question is provided along with
any other items that your producer requires.
Increased
bond amounts, such as in excess of $50,000 may require additional
items and/or underwriting in order to approve. With these surety
bonds clients are generally required to provide an application,
personal financial statement, business financial statement (if
applicable), as well as verification of any cash and securities
as listed on their statements. Verification should consist of bank
and securities monthly or quarterly statements.