Home / How to get a Surety Bond

How to Get a Surety Bond?

Do you need a surety bond to get a professional license, start a business, pursue a court case, or do one of the hundreds of other things that require bonds? Good news! Getting bonded and insured doesn't have to be a challenge as long as you know what steps to follow. For the bonding side of the equation, simply follow the steps to get a surety bond outlined below.

The Surety Bond Process

1. The first and most important step is to find a quality surety provider to work with. There are many to choose from, but not all of them are created equal. Some will try to charge your exorbitant premiums. Others will drop the ball in terms of service and support. If you can't spend the time considering dozens of different options (or simply don't want the hassle), rely on Viking Bond Service - a nationwide surety broker capable of finding you the best bond available.
2. No matter who you decide to work with, contact that company before doing anything else. Representatives can tell you exactly what to do when applying for the specific kind of bond you need. Different bonds can have wildly different application requirements, so you often save time and headaches by checking first. Making contact also allows you to ask questions or get more information. That's important because you won't want to continue with the surety bond process until you understand exactly what it involves.
3. Apply for the bond by completing a standard bond application. Bond companies base the premium price on the applicant's credit risk, so they use the application to explore things like your credit score and your financial history. You may also need to supply supporting documentation. With court bonds, for instance, you need to turn over a copy of the court order requiring the bond. Less common, you may also need to put up collateral to secure the bond.
4. With the information you supplied, underwriters at the surety will calculate a premium price, meaning the amount you will pay to activate the bond (typically for one year). Keep in mind that two people applying for the same bond may pay drastically different premiums because of their credit history. After arriving at a figure, the surety company will quote you a price. At Viking Bond Service, most applicants received a quote within 24 hours of applying. You have no obligation to accept the offer, and there is no fee for the quote.
5. The bond activates after you pay the premium price. That means you've met the bond requirement. However, it also means you're subject to the terms and conditions of the bond. The surety will give you a document you can provide to the obligee (the party that requires you to have a bond) to make things official.
6. If you need a bond permanently, which is often the case for professionals and businesses, you must know how to get a surety bond renewed. In most cases, renewing your surety bond is as simple as paying the premium for the next bond term, typically a year. In some instances, the surety may want to review credit and financials before renewing. For some who have experienced improvements in credit or financial standing, the bond can also be reviewed for a lower rate and/or better terms. This process is just like applying for the bond initially and will require a new application and any supporting documentation.

Surety Bond Rates

Viking provides Bonding through all major Sureties using A Rated, Treasury Listed paper. This means Viking can do the shopping for you and offer you the most competitive quotes.

Surety Bond rates can vary greatly based on the type and amount of the bond, the quality of credit and in some cases, financials. Typically, the better the credit and/or financials, the better the rate. Poor credit will typically receive higher quotes.

In most cases, the only accurate way to get the rate for your specific request is to get a quote. An underwriter will take all the variables into consideration and offer a corresponding rate.

In instances where the initial rate is high due to poor credit, upon renewal, if applicable to the bond type, Viking can review updated credit and/or financials. If there is sufficient improvement, our renewal department can search for more favorable rates and terms.

How to Keep A Surety Bond

Once you get a surety bond, you may need to keep that surety bond into perpetuity. This is true for many professionals who need a surety bond to get a license (like plumbers) or operate a business legally (like motor vehicle dealers). If these professionals don't have an active surety bond, it could render their license invalid and expose them to serious legal and financial risks.

Most bonds remain active for 12 months, but the surety bond agreement may establish a different length of time. Past the expiration date, the bond protections lapse, meaning the surety agency will not settle claims on behalf of the principal. Bond renewal prevents that from happening. Renewing a bond before the expiration date ensures seamless bond protections, which are legally required for many professionals and businesses.

Renewing any type of surety bond works very similar to the initial application process. The bonded party will need to fill out a standard bond application with information about their business, background, and any partners they have. They will also need to submit to a credit check. Underwriters re-evaluate an applicant's risk every time they renew a bond. If your credit score has gone up or down since the last time you renewed the bond, your premium may go in the same direction. Keep this in mind when budgeting for yearly surety bond costs. And use it to your advantage since improving your credit score can lower your bond costs.

When you obtain a surety bond for the first time, work with the surety agency to explore how the renewal process works and when it will ramp up. The more you understand what lies ahead, the better your bonding experience will be. A good surety agency will be happy to walk you through every step of the process for how to get a surety bond - and then explain exactly how renewal works. Later, they will alert you about the need to renew long before it's necessary so that your bond protection doesn't accidentally lapse. To put it simply, a great surety agency makes bonding easy for you. Count on Viking Bond Service to go above and beyond.

Viking can assist with ANY type of Surety Bond

has the necessary Surety relationships that enable us to assist with any type of surety bond. We are able to assist with Contract Bonds of all amounts, Judicial/Court, Financial Guarantee, License and Permit, as well as other miscellaneous bond types. We are also able to assist with any Fidelity Policy requests. Regardless of type, Viking provides fast quotes, competitive rates and friendly service.

Next Steps on Getting Bonded

Viking can service surety bond requests nationwide for any type of surety bond. Whether you are a person or business seeking licensure or a contractor bidding on a job, Viking can provide competitive terms and quick service. Getting the bonding process started with Viking is easy. There are several ways to get started with Viking:

• Call Us. (1-888-278-7389) We are happy to take your call and go over your specific request person to person.
• Complete the Online Application.
• Use an existing surety bond application. If you have already completed an application elsewhere, you may send that same application to us and we will work from it, rather than having you complete a new one. Additionally, you can send in any surety bond quote received elsewhere and we will attempt to beat it.
• Complete the Contact Form on the page and indicate the type of bond required if known. One of our specialists will contact you shortly after you complete the form.
• Email Us. You can email us with any questions or with an explanation of what you are looking for. Be sure to include contact information so one of our specialists can get back to you via your preferred method of communication.