If this is the first time you’re in need of a surety bond, you might not know where to start. How can you tell if a provider is reputable? After all, a simple online search will bring up dozens of companies, and you want to feel confident about your choice. Use the guide below to choose a surety bond provider that’s right for your business.
Any surety company that meets your state’s licensing requirements can help you get bonded. Proper state licensure is the most important thing to look for at the start of your bond purchasing process. But this factor alone still leaves you with many businesses to review before deciding which one is right for your needs.
Let's start by clarifying some terminology you might come across while you're doing your research.
Once you start receiving quotes, or when you have the bond contract to sign, you may notice these terms being used in specific ways.
Related Article: Getting a Surety Bond: Everything You Need to Know
Before spending any money, there are several important things to consider when choosing a surety bond provider:
Specific elements of your bond agreement will vary based on state laws for the services you offer or the type of business you operate. No matter what type of surety bond you're looking for, it's up to you, the bond principal, to make sure you’re getting the right policy and coverage amount required by your industry’s regulatory authority.
Reputation is an important consideration in business, especially when it comes to things like insurance and bonds. Once you’ve established that a surety provider is properly licensed and offers the right type of bond for your needs, you’ll want to make sure they're reputable. Here are a few tips to help you compare bonding companies.
Once you’ve selected a few reputable surety bond providers, it’s time to request quotes and compare costs.
Let’s take a look at the primary factors that impact the price of your bond.