Surety Bond Costs: Answers to 5 FAQs. Predicting what you’ll pay for your surety bond can be confusing. To help you understand what goes into calculating surety bond premiums, SuretyBonds.com has developed this guide. I’m Kristen and I’ll be answering 5 common questions you might have about surety bond cost.
How is my surety bond premium calculated?
A number of different variables might affect your surety bond cost. Your surety bond provider will calculate your premium by using a percentage that’s based on a specific bond type, it’s needed amount, the risk involved with the bond and your financial credentials. When applicants have strong financial credentials, surety bond premiums are typically calculated using rates that are 1- 5% for the bond amount. For example, a $10,000 surety bond will cost about $100-500 for those who qualify for the standard bonding market.
Will my credit affect my surety bond cost?
During the underwriting process your surety provider might consider your work history, credit score or other financial records to determine the risk they take when issuing the bond. The lower the risk, the lower the surety bond cost, as such applicants with good credit usually pay lower rates for their bond.
How do I find how a surety bond for the best value?
Buying a surety bond is like making any other important financial decision. Get what you need for a great price. Contact a reliable surety broker that can offer you great service for a competitive price. Because surety brokers like SuretyBonds.com, work with numerous underwriter, they have access to some of the lowest rates available nationwide.
When do I have to pay for my surety bond?
Surety providers almost always require bond premiums to be paid in full before they will issue the bond. Sometimes surety providers might offer financial to high risk principals with poor credit scores, however you should always be prepared to pay your full surety bond premium upfront.
How will I pay for my surety bond?
Most surety providers request credit or debit card payment so underwriting and bond processing can begin much more quickly. If you prefer to write a check you will have to wait longer to get the bond as your payment will have to be cleared before the provider issues the bond.
Check out http://www.suretybonds.com/edu/faqs for more information on bonding costs.
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