Popular Austin, TX Surety Bonds
Overview of Austin Surety Bonds
The city of Austin requires many businesses to obtain a surety bond when applying for a business license, or when renewing their license. The purpose of surety bonds is to provide protection to the state and to clients of bonded businesses. A bond guarantees that the bonded business will comply with state requirements, and with the conditions set forth in the bond agreement.
Licensed contractors who work on federal or state projects are often also required to obtain contract bonds that guarantee they will complete a contract and pay all their subcontractors and laborers.
All bonds provide protection to the parties that a bonded person or business offers products or services to. They do so by extending compensation to these parties when a claim is filed against the bond. Compensations on bond claims can be as high as the penal sum of the bond.
Our ‘What is a surety bond’ guide can provide you with all the answers you need about how surety bonds work.
The following sections detail how much your bond may cost, what bond claims are and when they occur, and how to get your surety bond in Austin, Texas.
Call us at 866.450.3412 if you need more information regarding the bonding requirements in Austin or have any other questions about getting bonded!
Austin, Texas, Surety Bonds Cost
To get a bond you need to pay a surety bond rate. That rate, or cost, is determined on the basis of the amount of the bond as well as your personal financials. Different bonds have different amounts. Some have fixed amounts, such as the Texas auto dealer bond ($25,000), while others are determined by state or county institutions for each applicant separately.
Depending on your financial history, you will need to pay a small percentage of the total amount to obtain the bond. If you have a high credit score, and other good financial indicators– such as good financial statements or liquidity– the rate at which you will get bonded is typically quite low. The higher your score, the lower your cost.
To find out how much it will cost you to get your surety bond in Austin, TX, submit our quick application form, and we’ll supply you with a free quote on your bond.
Getting Bonded With Bad Credit
With the exception of contract bonds, applicants whose personal credit score is low can also get bonded in Austin.
Our Bad Credit Program makes it possible for such applicants to get their bond just as easily and as fast as applicants with higher rates. Bonds under the bad credit program are issued at slightly higher rates, because of the higher risk involved for sureties. Regardless of the program you are getting bonded under, your bond will be supplied by A-rated and T-listed surety companies, and you will get the best possible rate you can have with us.
For more information regarding the program, and a quote on your bond, visit the program page or get in touch with us.
Claims Against Surety Bonds in Austin, Texas
Claims against surety bonds can occur when a bonded individual or business is found to be in violation of the conditions of the surety bond agreement. These conditions usually include the compliance with state rules and regulations, as well as avoiding dishonest, fraudulent or misleading business practices.
When such a violation occurs, a claim can be filed against the bond, and compensation can be received by those parties that were harmed as a result of the bonded party’s actions. In return, once compensation is extended, the bonded party (the principal) must repay the surety in full for the compensation it has paid out.
Bond claims are difficult and complicated, and are best avoided by bond principals. Avoiding a bond claim is easy, if you carefully abide by the conditions of a bond, and to best business practices. If reason for a claim should still arise, bond principles are advised to contact their sureties and consult them, since most sureties have plenty of experience in managing and stopping bond claims from occurring.
Get Your Surety Bond in Austin, Texas, Now!
Ready to get a bond? Begin by completing our bond application form. We will then contact you with your free quote. Once you have your quote, you’ll need to supply us with a bit of additional information.
Your bond will be issued within two days of completing the application process. We’ll forward it to you via email, as well as via standard mail.
If you have any further questions regarding how to get bonded, or a specific bond in Austin that you need to obtain, call us at 866.450.3412. We’ll be happy to assist you in the bonding process.