Surety bonds are vital for Business owners

June 1, 2009

Surety bonds are vital for company owners to become compliant with state licensing  The practice of  obtaining the surety bonds dates back hundreds of years , when such agreements had the role of amplifying the safety and efficiency of long-distance trade. Nowadays surety bonds can take a mixture of forms, play a wide range of roles and are commonly used to secure the terms of major contracts.

Recently elaborate market investigations that are conducted in the US have revealed that over 60,000 contractors in the construction industry failed to respect their agreements over the last 10 years, canceling public and private sector construction projects worth more than 18 billion dollars. Normally surety bonds will be launching a temporary tripartite relationship between the obligee, the obligor and the surety. Two main categories of surety bonds available are contract surety bonds and commercial surety bonds. A popular subcategory of contract surety bonds is signified by bid bonds, and on the other hand, a popular subcategory of commercial surety bonds is represented by contractor license bonds. Whether you are interested in closing performance bonds, payment bonds , contractor license bonds, subdivision bonds, court bonds or various other types of surety bonds whatever it might be, it is very significant for appealing the services of a prominent, respectable and reliable surety bond-services offering agency. Surety bonds will continue to be a important rule in consumer protection.  In the next few years with more business being regulated there will be more surety bond required for different classes of business the newest surety bond requirement is the $50,000 Medicaid bond. I hope this helps you understand how surety bonds still play a vital role in today’s economy as well as protection for the consumer


Getting Surety Bonds Before There Was Google

June 1, 2009

Before the Internet revolutionized the way individuals purchase Surety bonds the principal had to first find an agency that wrote them. Clients would look for months to find an agency that writes them, but just because they write surety bonds does not mean that they will write one for you.

What I meant by that is that surety bonds are a specialty field if you’re not a millionaire you may have a had time qualifying for one. So finding a surety agency that has the right markets and knows how to underwrite hard to place bonds can be difficult. The Internet has changed all of that for you. You can now save yourself time and find agents that specialize in hard to place surety bonds or just surety bonds in general using Google. Many brokers have business outside of you state and Google has opened doors that once were closed.

The Internet has also made it easier for customers to qualify for bonding because they now can fill out surety bond applications online. This improves how long it takes to get a bond as well as getting a bond approved. No more driving around town trying to find a agent that will write a bond for you. No more hand written applications that may take longer to underwriter because the underwriter is having a hard time trying to reading your application. So next time you need a surety bond fill out our online surety bond application and save yourself time and stress.

I hope this has helped you with your quest of suretyship.

Surety Bond types can be confusing you can learn more about Surety Bonds at our blog