Frequently Asked Questions

What is a Surety Bond or Definition of Surety Bond?

Technically speaking, a surety bond is an insurance product, but the similarity ends there. Unlike an insurance policy, a surety bond does not protect the person purchasing the coverage, but instead it protects some third party. If you are reading this, chances are some entity asked you to get a bond. That could be a state licensing authority like a Liquor Control Board, or the Division of Motor Vehicles, or a Court. Literally any entity can require a bond of another. In all cases, the bond guarantees that you, the purchaser (Principal), will perform as required by the third party (Obligee). We have now decided to expand our services and offer them direct to you, the public, on certain classes of bonds.

Are there different types of surety bonds?

Yes! There are two categories of surety bonds; contract and commercial. A Contract bond allows for financial security by assuring the third party (obligee) that the purchaser (principal) will perform the work, in addition to paying for subcontractors, suppliers, etc. Contract bonds include bid bonds, maintenance bonds, payment bonds, performance bonds etc. Commercial bonds guarantee performance of the principal to the responsibility described in the bond. Commercial bonds include license and permit bonds, public official bonds, probate and judicial bonds as well as miscellaneous bonds.

How or where can I get a surety bond?

As insurance products, surety bonds are sold through licensed insurance agencies who represent various surety companies. However, since surety is such a specialized field, many insurance agents lack the knowledge and expertise to properly service this product.

What types of surety bonds do you handle?

Unlike many other bond agents, we DO NOT handle contract surety, but specialize specifically in Commercial and other non-contract surety business. While we only handle commercial bonds, we specialize in the simple, efficient processing of these surety bonds.

What does a surety bond cost?

The surety bond premiums can vary depending on the surety company being used. Typically, the bond cost can range anywhere from one half of one percent to two percent of the bond amount. Most quoted premiums are with RLI Insurance company unless otherwise indicated. Most bonds are $100 min. premium unless otherwise specified.

Why is a surety bond needed?

Surety bonds are required for many reasons, such as operating a business, obtaining a license or to fulfill a requirement for local or state governments. The primary function of a bond is to protect the general public by guaranteeing that an individual or business will abide by the contract terms.

Is a Surety Bond the same as insurance?

The only similarity between a surety bond and an insurance policy is that they are both a means of transferring a risk and provide for financial loss. An insurance policy transfers risk from a policy holder to an insurance company, whereas a surety bond protects an obligee against losses, not a policy holder.

Insurance policies are two party agreements (insured and insurer); surety bonds are three party agreements (principal, obligee, surety). Insurance companies are prepared and structure their premiums in order to anticipate losses whereas a surety company does not expect losses to occur under a bond. This is why there are strict underwriting guidelines for some bonds.

Additionally, both surety bonds and insurance policies are regulated by the individual states.

How long until I receive my surety bond?

At BondAbility, we pride ourselves on fast, efficient service to our customers. All bonds are processed within 2 hours. Orders received by noon are mailed that day! We also have instant electronic mail and overnight delivery available for your convenience.

What is our Privacy Policy?

All information submitted to will be held confidential and will be used for the sole purpose of communication or in preparation of a surety bond or insurance product. will not sell, rent, swap or otherwise disclose confidential information to any third party. BondAbility accepts no liability for information that may be intercepted by unauthorized acts of a third parties.

What is our Return Policy?

Surety Bonds are legal documents and as such the premiums charged are fully earned upon issuance. Return premiums can only be allowed in those rare cases were original bonds can be returned unused and it can be demonstrated to our surety company's satisfaction that they have incurred no liability.

  Why Choose BondAbility?

Surety Bond Tip 1 Simple Application Process
Fill out our simple online Application.
No need to wait for someone to call you.
Surety Bond Tip 2 Competitive Rates
Great prices for good credit, reasonable prices for marginal credit.
Surety Bond Tip 3 Bad Credit? No Problem!
We have access to bad credit markets.
Surety Bond Tip 4 Experienced Surety Agents
We have been writing surety bonds
since 1976.
Surety Bond Tip 5 Fast & Efficient Service
Get approvals in about an hour, not days.

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