Popular El Paso, TX Surety Bonds
Overview of El Paso Surety Bonds
To start a business in El Paso, you are likely to need a licensing surety bond. Surety bonds are agreements between the state, the surety, and the individual or business that guarantee that the bonded party will comply with state laws and regulations.
Contractors who wish to work on state or federal construction projects are usually also required to obtain a contract bond. This bond serves as a guarantee that the contractor will execute their obligations to the construction contract in full, as well as pay their subcontractors, laborers and material suppliers for the work they have done.
In case of a breach of contract or a violation of state regulations, a claim can be filed against the bond. The bond company may extend compensation to claimants up to the full bond amount, also known as the penal sum of the bond.
For a full explanation of how surety bonds work, see our ‘What is a surety bond’ guide.
Below you can find information regarding how much bonds in El Paso cost, why and how bond claims arise, and how to get bonded in El Paso.
Want to know more? Call us at 866.450.3412 to speak to one of our bond experts.
Surety Bond Cost in El Paso, Texas
To become bonded you need to pay a certain rate or surety bond cost. Your bond rate is a percentage of the total amount of the bond you need to obtain and is determined on the basis of your personal credit score, your financial statements, liquidity, assets and more.
Say you want to get a Texas auto dealer bond in the amount of $25,000. Depending on how high or low your personal credit is, your surety will provide you with a rate on the bond. As a rule, applicants with high credit scores (700 FICO and above) get the lowest rates on bonds.
If you want to get bonded in El Paso, submit your surety bond application form, and we will provide you with an entirely free quote on your bond as well as details how you can get bonded straight away.
Getting Bonded With Bad Credit
Other than applicants for contract bonds, all other applicants for surety bonds can get bonded even if they have a low credit score.
Thanks to our Bad Credit Program, applicants who currently have a low credit score have access to all types of bonds. These bonds come at a slightly higher cost, because the surety assumes a higher risk when bonding bad credit applicants. All bonds under this program are provided and backed by the same professional sureties that back all of our clients’ bonds. And thanks to the many sureties we work with, you are guaranteed to get the lowest possible rate on your bond.
Visit the program page if you want to know more about getting a bond with bad credit, or to request a quote.
Claims Against Surety Bonds in El Paso, Texas
Surety bonds guarantee that if the bond obligee to the agreement is harmed in any way as a result of the bond principal’s actions, the former can file a claim against the bond. Bond agreements typically spell out the conditions under which a claim can be brought against the bond. These conditions are based on the requirements set forth in state or federal laws and regulations governing the industry that the bonded business or individual operates in.
Bonds are sometimes required by your county or city, rather than your state. In this case, for example in El Paso, the county or city will specify the conditions of compliance in the bond. If these conditions are violated and a claim is filed, the bond company will extend compensation to claimants, whereas the bonded El Paso business will then need to compensate the surety.
Actions that typically lead to bond claims are fraud, negligence, malpractice, misrepresentation and other misdeeds. Since claims can present a major obstacle to businesses in terms of finances, and hurt your reputation, it’s best to always comply with the conditions of the bond. If you have any doubts about a possible claim being filed against your bond, contact your surety to receive advice and consultation.
Get Bonded in El Paso Today!
Get a free quote on your bond by completing and submitting our surety bond application form. There are no obligations attached to requesting a quote. We’ll also provide you with further instructions on how to complete the application process, once you have your quote.
It takes up to two working days to issue a surety bond. Once your bond is issued, we’ll forward you a digital copy via email and send you the original via standard mail.
For further information regarding the bonding process or to receive assistance with your application, call us at 866.450.3412. We’re happy to help!