How Much Does a Surety Bond Cost?
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Transcript of How Much Does a Surety Bond Cost?
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> > How Much does a Surety Bond Cost?
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Well, it depends . . .
There are thousands of types of surety bonds.
We need to narrow things down to give you a proper answer . . .
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What Will Affect the Costs?
General guidelines affecting Surety Bond cost include:
• Type of Bond• Experience in the Industry• Credit History
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Looking for a Bail Bond?
“Bail Bonds” – surety bond related to a criminal legal incident
Not what we do at SuretyBonds.com.
You will pay a set fee to a bail bond company, and may have to post collateral.
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Need a Bail Bond?
Try a search for your local area + “Bail Bonds Company”.
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Small Businesses Owners
Again, the cost of your surety bond will depend:
• Type of Bond• Location• Credit History
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Why Does Credit History Matter?
This is a game of risk mitigation.
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Commercial Surety Bonds
-Mortgage Brokers -Tax Collectors-Insurance Brokers -Notaries-Car Dealerships -Collection Agencies-Medical Providers -General Contractors-Travel Agents -and more . . . -Home Cleaners-Janitors
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Common Premium Costs
Most commercial bonds will carry a premium cost of 1% up to 15%.
If you’re getting a $50,000 bond, you’ll pay anywhere from $500 to $7,500.
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Why the Large Gap in Costs?
There are two different markets:1. Standard2. High-Risk
“Standard” is cheaper.
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I want to be “Standard” then!
To qualify for Standard premiums, you’ll need to meet some criteria.
Been in Business > 1 year.Credit score > 650.No prior surety bond claims.3+ years experience in your industry.Personal net worth 1-3x the bond amount.
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Non-Standard or “High Risk”
You can still obtain a surety bond if you do not meet the “Standard” criteria.
Have no prior surety bond claims.Are a US Citizen.
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Our Takeaways
Talk to a Bonding Agency, like SuretyBonds.om
Price will vary greatly based on situation.
Standard and Non-Standard surety bonds are available.
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www.suretybonds.com/eduwww.suretybonds.com/blog
Produced by the SuretyBonds.com Education Center