Insurance verses Surety Bonds
Everyone is familiar with the insurance industry and how it works−an individual pays a premium and the risk is transferred onto the insurance company. With surety bonds the risk remains with the principle, and the protection instead goes to the obligee.
With insurance, the insurance company expects a certain percentage to be paid out in claims. In a Suretyship, these premiums do not cover losses, but are instead paid as "service charges" for the right to use the surety company's financial backing and guarantee.
Sureties view their underwriting as a line of credit, so their focus is on prequalification and the selection process. Because of this focus, not everyone will be bonded. The truth is, in today's market it is getting more difficult to be bonded. If you fall into this situation because of poor credit, or you are a start-up company with no credit, please look at our Bad Credit Surety Bond Program. It may be just what you need to get up and running.
