Are you looking for a surety bond in Florida? If you live and work in this warm and welcoming state, you may require a surety bond to do business.
A surety bond is a contract that promises you will follow through on your obligations. Depending on what type of surety bond you need, your obligations will vary.
The purpose of a surety bond is to protect those involved in your obligations. If you fail to follow through with your obligations, someone can make a claim against your surety bond.
In this sense, a Florida surety bond is kind of like insurance for other people, paid for by you. Here's how to get a surety bond in Florida and what to expect.
How to get a Surety Bond in Florida
Step #1: Apply for Florida Surety Bond
You can get a Florida surety bond from your local insurance company or a licensed surety bond company.
Most people to choose to get their bond from a surety bond company because of the expertise and competitive pricing.
Applying for your surety bond is simple; most companies allow you to apply for your surety bond online.
Step #2: Approval and Pricing
After you've applied for your Florida bond, a surety bond underwriter will evaluate the risk of bonding you.
One of the main factors used in evaluating the risk of bonding you is your personal credit score. The surety company will want to evaluate how likely you would be to repay them should a bond claim occur.
Those with good credit show a lower risk of being bonded, therefore they will pay a lower price. Those with bad credit show a higher risk of being bonded, therefore they will need to pay more.
- If you have good credit, expect to pay 1-3% of the total bond amount.
- Those with bad credit might need to pay anywhere from 4-15%.
The below chart gives you a ballpark range for what you might pay for your Florida bond.
The best way to see what you'd pay for your bond is to get a free quote. There is no obligation to buy and you can compare prices.
Step #3: Sign Indemnity Agreement and Pay
Once you've been approved for your Florida bond, the last step is to sign the indemnity agreement and pay.
An indemnity agreement holds you liable for the obligations under the surety bond. It is almost always a requirement to get bonded. There are cases when an indemnity signature is waived. This will need to be discussed with the surety company.
Most surety companies allow you to do the entire check out process online - pay for your surety bond and sign the indemnity agreement.
You only need to pay one time for your surety bond. The only time you would need to pay monthly is if you choose to finance your bond. You can learn more about financing.
Ready to see what you'd pay for a Florida surety bond?
Submit one application and see what you'd pay from multiple different carriers. It's simple and easy...and there's no obligation to buy.