Buy a Surety Bond Online

In this modern era full of technological aqdvancements, many contractors are being asked to submit electronic documents to procure work. This denotes that some jurisdictions around the world say that surety bonds are need to be submitted electronically. Let us go thriugh some of the easy steps:

1. submit an Application
This step requires basic details. Provide some of the personal information and a little business related information. Most surety companies will have an application form on their website which you can submit. You will be asked to submit the required documents if your application is accepted.

2. Price Evaluation
To determine how much you'll pay for your bond, you shall be measured. The best part about the internet is the research you can do in a matter of minutes. Shop around and do a price comparison between different surety companies. You will be required to pay somewhere between 1-15% of the total bond amount. If the bond is of $50,000 bond, you might only require to pay $500. the evaluation is mostly done on 3 factors:

The three things you will be evaluated on to determine your surety bond rate are credit history, experience, and finances.

• Credit: Most surety bond rates are based on the credit record of the owners. Those with great credit might only need to pay 1-3% of the total amount, while those with not good credit will need to pay more.
•  Experience: Your experience of the past obligations determines how much you'll pay for your bond.
• Finances – To determine how much risk is associated, your past financial score is measured.

3. Quotes
Once your evaluation is done, the surety agent will provide you with your surety bond quote. The more quotes you can get the better as this permits you to know that you are getting the best rate available for your bond. Each carrier has their own protocol of underwriting rules and prices can vary widely from carrier to carrier. This holds true in the case of work contracts which normally don’t receive insurance coverage. For them, it’s a surety bond that provides the much-needed financial protection.

4. Sign Indemnity contract
Each applicant must sign an indemnity contract which says that the principal agrees to pay back the full amount of any bond claim filed with the surety agent. Surety bonds are a form of a binding contract between two parties, with a third party issuing the bond. The first party is a principal, who needs a contract from an obligee (second party), who is also the project owner.

5. Pay the amount
You always can buy a surety bond online. Depending on the amount of the bond, you may be able to set up a bond payment plan to spread the premium cost over a period of 6 months.

6. Submit Surety application to Governing body
In many cases, you will need to mail the original bond to the governing body that needs the bond. Once your application is approved, you will need to sign an indemnity agreement with the surety. This will complete the process of buying surety bonds online.