Surety bond cost is affected by many factors. If you’re looking to obtain a surety bond, Viking Bond Services can provide you with a quote for the cost of a surety bond within 24 hours. The following are a few factors that can impact the cost of your surety bond:
At Viking Bonding Services we’re often asked, “how much does a surety bond cost?” The simple answer is that it varies. When a bonding company works out a quote for a surety bond they go through a series of calculations. The result of the calculations determines the base premium of the surety bond; this is the premium amount you will need to pay each year. What many people don’t realize is that there are numerous factors that influence surety bond cost. This means there is no set price for a surety bond and the price will vary from person-to-person. Here’s a closer look at some of the key factors that influence your surety bond cost:
There are many types of surety bonds available. The cost of surety bonds varies between bond types and can also vary between states. The best way to determine how much the bond you need will cost is to request a personalized quote from a credible bonding company.
The cost of the bond is heavily influenced by the amount the bond is for. This is the figure the surety will have to pay to the obligee should the bonded work not be completed. A $200,000 surety bond will always cost more than a $100,000 surety bond of the same type.
The cost of a surety bond is calculated based on the risk the bond poses to the surety. In other words, if there is a high risk that the surety will have to pay the oblige because the principle fails to complete the bonded work during the set time period, then the cost of the bond will be higher. Bond companies will examine business resumes, business financial statements, and the principle’s credit score to ascertain how financially secure and reliable a principle is. People with bad credit can still obtain surety bonds, but they might have to pay a higher price.
It’s not unusual to see additional fees on top of the base premium for a surety bond. Additional costs often include a broker/agency fee to cover the cost of issuing the bond, credit checks fees, and any additional operating costs associated with the bond.
Here at Viking Bond Services we aim to provide clients with a quote within 24 hours. We pride ourselves on being honest and efficient, ensuring that you get the best and most trustworthy bond service available. Contact us today to get a personalized surety bond cost quote.
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