Surety Bond FAQ ➤

Surety Bond FAQ

Serving in the Greensboro, High Point, Archdale, Summerfield, Burlington, NC and Surrounding Areas

What is a surety bond?

A surety bond is basically a contract among three parties that involves paying a debt and promises that requirements will be met. It is most often associated with a financial guarantee.

Who needs a surety bond?

Surety bonds are often legally required for those working in certain industries, such as construction. Other kinds of surety bonds apply to different commercial enterprises.

How do surety bonds work?

A surety bond is a promise to be held liable for the debt, default, or failure of someone else. The obligee (the entity that is protected) requires the principal (the individual or business) to purchase the bond and honor its terms. The surety company will financially back the bond if the terms are violated. If the surety company pays out any claims, the principal must reimburse them.

Why are surety bonds beneficial?

Construction projects that are bonded by surety tend to have a significantly higher rate of completion and a much lower rate of default than unbonded projects. They also report improved or lowered contractor pricing and increased confidence in the overall quality of work. 

How do I get a surety bond?

The process of getting a surety bond is very simple. Simply contact our company to ask for a quote. We'll ask some questions and determine your bond premium. Once all necessary parties agree, we will give you a copy of the bond agreement and you will pay the premium. You will receive all possible documentation for your records.

How long does the process take?

The answer to this question will depend on the type of surety bond you need. In some cases, the entire process can be completed in just a few minutes. For more complicated bonds, the process might take several hours or even multiple days. 

What should I know when I apply?

When you contact our agency to apply for your surety bond, you'll need to know which kind of bond you need and its amount. Our team will be able to help you if you're not sure where to begin.

Is a surety bond the same as insurance?

No. Insurance involves paying into a pool to reduce risk, while surety bonds involve three parties in situations where financial loss is not anticipated.

What if I have bad credit?

Even if you have bad credit, you still may be able to get a surety bond. Bonds are given on a case-by-case basis.

What is the cost of a surety bond?

The price of a surety bond is completely dependent on the parties and the project in question. Call your bond company for a quote!


Do You Have More Questions?

Darryl & Steve’s Bail Bonding is always here to answer any questions you may have about surety bonds. Give us a call anytime you need our help. We serve those in Greensboro, NC; High Point, NC; Burlington, NC; Archdale, NC; Jamestown, NC; Summerfield, NC; Oak Ridge, NC; Stokesdale, NC; and the surrounding areas.

Contact Us Today - We Find A Way To Say “Yes”!