Popular Surety Bonds in San Francisco, California
Overview of San Francisco Surety Bonds
The state of California and the city of San Francisco frequently require businesses to obtain a license bond before they can legally offer their services or products to consumers. This includes contractors, auto dealers, auto park operators, mortgage and freight brokers, and many others.
To work on public construction projects, contractors in the city may require a contract bond. For example, in order to excavate and restore a street or sidewalk in San Francisco, contractors need to post a $25,000 street excavation bond.
A third type of bond which could possibly be required are court bonds. These bonds are needed when a fiduciary is appointed by a court or in cases in which one wants to appeal a court decision.
All of these surety bonds serve the purpose of offering financial guarantees and protection to the city and public of San Francisco. They are a binding agreement that bonded parties will comply with local regulations, such as the Public Works Code of the City and County of San Francisco, the Business and Tax Regulations Code, and others.
If a bonded party violates the bond’s conditions, causing damages or losses to the parties it protects, the latter may file a claim against the bond. Under the bond agreement, when the surety is required to pay compensation to claimants, it can extend compensation that is as high as the full penal sum of the bond.
If this is your first time getting bonded, see our ‘"What is a surety bond’ guide for a detailed explanation of how bonds work!
Read on below for more about the cost of your bond, how bond claims occur, and how you can get bonded.
Call us at 866.450.3412 anytime, if you need more information about a particular bond or require assistance.
Surety Bond Cost
Your surety bond's cost is a fraction of the full amount of the bond agreement. For example, contractors requiring a street excavation bond in the amount of $25,000 must pay a percentage of that amount in order to get bonded.
The exact percentage you must pay is determined by the surety when you apply. Applicants with a high credit score and other positive financials are typically offered a low rate on their bond, whereas applicants with lower scores must pay slightly higher rates.
Typically, if you have a credit score above 700 FICO, you can expect to get the lowest rates on your bond. For an exact quote on your bond, complete and submit a bond application and we will provide you with one shortly. Requesting a quote is free and with no obligations attached.
Bonds With Bad Credit
Even if your credit score is low, you can still get bonded freely!
Thanks to our Bad Credit Program, applicants with lower or nonexistent scores can apply for a bond and get bonded just as easily as everyone else. The only difference to our standard bonding program is that bond rates under this program are slightly higher. But with continued improvement of your credit score, you can easily get better rates when you renew your bond.
See the program page to find out more and to request a quote.
Surety Bond Claims
A claim can be made against a bond, when the bonded party violates the conditions of the bond agreement. Every bond is conditioned upon a different set of obligations which the bonded party assumes in relation to the bond obligees - typically the state or the public.
For example, the San Francisco parking tax collection bond is conditioned upon the obligation of parking station operators to pay taxes to the City Tax Collector on any parking fees and charges they collect. The street excavation bond, on the other hand, is conditioned upon contractors’ faithful compliance with Article 2.4 of the SF Public Works Code which details how such work must be performed.
When a claim is made, the surety company may pay out compensation to claimants up to the full amount of the bond. In return, as part of the bond agreement, the bonded party must repay the surety in full. For this reason, strictly complying with the conditions of your bond agreement and avoiding claims is the best strategy!
Apply for Your Bond Today!
Begin your application process now by submitting a surety bond form!
We will then provide you with a free quote, along with more details about finalizing your application. It will take about two working days to issue your bond. As soon as your bond is issued, we will forward it to you through standard mail, as well as provide you with a digital copy thereof.
Call us at 866.450.3412 if you have any questions about the bonding options and requirements in San Francisco! We will be happy to help you!