What Do I Need To Apply For A Surety Bond?
Perhaps you recently found out that a surety bond is required for your business, but have never gone through the process before, what will you need to become bonded? Well let us assure you the process is fairly simple. Below are the key components of your surety bond application:
- Personal Information: As the Principle to the bond you will be required to provide your address, birthday and social security number; if married, your spouse´s information will also be required. This information will be required for every owner that owns greater then 5% of the company. You will also be required to provide the information that will actually appear on the bond, mainly your businesses name and address.
- Obligee Information: The next piece of information that you will need to provide is that of the entity that is requiring you to get the bond, otherwise known as the Obligee. This information will include the name and address of obligee (for most clients this is the local or state government), the type of bond they are requiring you to have (the line of business you are in), and the amount the bond must be for.
- Financial Information: Every owner with a greater then 5% stake in the company will be required to submit a personal financial statement, this can be done by submitting the form within the application, or by submitting a CPA prepared or software produced, statement separately. In addition to the personal statements, business financials will also be required to place in the standard market. For business financials, CPA prepared is preferred, but once again, software statements (Quicken, Money) will be accepted. For companies less then a year old a resume of management will be required in place of business financials
- Credit: It is important to understand that your credit report will play heavily into what rate you are approved at. Though “high-risk” markets are available, this market carries a much higher premium. It is always a good idea to know what is on your credit report, make sure it is correct, and to make every effort to get rid of any public record that may appear.
- Bond Form: The bond form is the legal document provided by the obligee that contains the requirements of the bond. Visit our page about surety bond forms to learn more, and to learn how to obtain this form.
The above covers what is required of every applicant, and having this information prepared and organized will help you in getting bonded. Please note that dependent on surety bond type or size, additional information may be requested throughout the approval process. This is normal and does not mean that there is a problem with you application.
Addition Information on How to Become Bonded
Visit our Surety Bond Information page for additional information on surety bonds and the industry. In addition there is our list of surety bonds, as well as our online application that can often supply applicants and instant quote, or quote range.