Popular Atlanta, GA Surety Bonds
Overview of Surety Bonds in Atlanta, GA
Businesses and professionals in Atlanta who need a license are often required to obtain a surety bond as well. The surety bond is an agreement between the bonded party, the bond company which issues the bond, and the state. Its purpose is to protect the state and the public from the actions of the bonded business, and to guarantee their compliance with the laws and regulations in Georgia.
Surety bonds are also required from contractors who wish to perform work on a public contract. In this case, contract bonds are issued to guarantee the contractor’s performance, and their timely payment to subcontractors, laborers, and suppliers for the services provided.
Surety bonds provide protection through financial compensation if a bonded party causes harm, loss or damages. The compensation provided by bonds can be as high as the bond amount, also known as the penal sum. Bond amounts are determined by the state, while the amount of compensation for a claim is typically determined by the surety which backs the bond.
For more information regarding the bonding process, and how bonds work, see our detailed ‘What is a surety bond’ guide.
Below you can read more about how much getting your bond might cost, why and how bond claims are filed, and how to apply for a surety bond in Atlanta.
Don’t hesitate to call our surety bond experts at (866)-450-3412 if you have any additional questions.
Atlanta, Georgia Surety Bonds Cost
Surety bond cost is determined on the basis of a bond’s amount. The bond amount differs from bond type to bond type. For example, auto dealer bonds in Atlanta are $35,000, while contractor license bond amounts vary depending on county.
The cost of getting bonded is a fraction of the full bond amount– typically a small percentage. How much exactly you need to pay for your bond is determined by the surety once you request a quote and provide the necessary information.
To determine your bond’s cost, sureties look at your personal credit score primarily. They can also look at your financial statements, work history and experience, as well as your liquidity and assets. Applicants with high credit scores are usually offered the lowest rates on their bond.
Want to know how much your bond will cost? Complete our application form and we’ll get back to you as soon as possible, with a free quote on your bond.
Getting Bonded With Bad Credit
Excluding contract bonds, all other types of bonds in Atlanta can be obtained by applicants who have low credit scores.
Through our Bad Credit Program, we provide bad credit applicants with bonds issued by the same professional surety companies that provide bonds for all our clients. The cost of getting a bond with a low credit score is slightly higher, because sureties need to offset the higher risk involved in bonding such applicants. By improving their credit score over time, applicants can get progressively better rates each time they apply for a bond.
Visit the program page for more information regarding the conditions of the program and to get a quote on your bond.
Claims Against Surety Bonds in Atlanta, Georgia
Bonded businesses and individuals in Atlanta are required to comply with the conditions of their surety bond agreement. These conditions also include the requirement to comply with state laws and regulations, and to act fairly and honestly.
If a business does not comply with these conditions, causes harm, losses or damages to the state or the public, a claim can be filed against their bond. Different bonds have different conditions, so claims are filed for a variety of reasons, but always include some kind of violation on the part of the bonded party (the bond principal).
When a claim is filed, the surety thoroughly investigates to determine whether there is cause for a claim, and what amount of compensation it will extend. The surety typically then goes on to compensate claimants for their losses. Compensations against claims can be as high as the full amount of the bond.
Should the surety pay out compensation, the bond principal is required (as part of the bond agreement) to repay the surety in full for its backing. This condition is specified in the indemnity agreement, which is part of the surety bond agreement.
Bond claims can be difficult and costly to handle. That’s why always complying with your bond’s conditions and Georgia state laws is the best way of ensuring that you won’t need to deal with a claim.
Get Your Surety Bond in Atlanta, Georgia, Today!
To apply for your surety bond in Atlanta or just to get a free quote on your bond, just complete our bond application form. To finalize your bond application process once you have your quote, you’ll need to provide us a with a few more details.
It will take up to two working days to have your bond issued. After that, you will get your bond via email and standard mail.
If you require more information about getting bonded in Atlanta or need help with your application, call us at (866)-450-3412! We look forward to hearing from you!