Demystifying Surety Bonds: Answers to the 5 Most Common Questions

Surety bonds play a pivotal role across various sectors, from the courtroom to the boardroom. Understanding these instruments is essential for individuals and businesses embarking on activities that require guarantees of performance or compliance. Here, we address the five most common questions about surety bonds, focusing on defendant bonds, plaintiff bonds, probate and fiduciary bonds, and license and permit bonds.


1. What Exactly Is a Surety Bond?

A surety bond is a three-party agreement where the surety (bond company) assures the obligee (the party requiring the bond) that the principal (the party that purchases the bond) will fulfill an obligation or series of duties as outlined by the bond's terms. It’s essentially a financial guarantee that the principal will act in accordance with specified regulations or contractual stipulations.

2. Why Might I Need a Surety Bond?

Surety bonds are required for various reasons:

  • Defendant Bonds: Needed in court proceedings to ensure that a defendant will fulfill certain court-mandated obligations.
  • Plaintiff Bonds: Often required in civil litigation to protect the defendant from possible losses as a result of the plaintiff's legal action.
  • Probate and Fiduciary Bonds: Required from individuals who manage another person's assets or estate, ensuring they will perform their duties ethically and in accordance with the law.
  • License and Permit Bonds: Mandatory for businesses that seek to obtain a license or permit in many industries, assuring that the company complies with local, state, or federal regulations.

3. How Is the Cost of a Surety Bond Determined?

The cost of a surety bond, commonly known as the premium, is influenced by several factors, including the type of bond, the amount of the bond, the principal's creditworthiness, and the perceived risk associated with the obligation. Typically, the premium is a percentage of the total bond amount. Find out more about surety bond rates here.

4. What Happens if a Claim Is Made Against My Surety Bond?

If a claim is made against a surety bond, the surety company will investigate to determine its validity. If the claim is legitimate, the surety will pay the obligee up to the bond's full amount. The principal is then responsible for reimbursing the surety for the claim payout, along with any legal costs incurred.

5. Can I Get a Surety Bond with Bad Credit?

While credit is a significant factor in surety bond approval and pricing, having bad credit doesn't necessarily disqualify you from obtaining a bond. Surety companies like Jurisco specialize in working with individuals regardless of their credit history, though premiums may be higher to offset the increased risk.

Working with a Reputable Surety Bond Company

In dealing with surety bonds, partnering with a reputable and knowledgeable surety bond company is imperative. Jurisco stands out as a nationwide provider with lawyer-trained bond experts adept at handling the intricacies of surety bonds. They offer professional service tailored to the unique requirements of each bond type, ensuring compliance with all pertinent regulations.

Jurisco is dedicated to offering exceptional service, evident in their expedited application process, competitive rates, and personalized attention they provide each client. They understand the urgency and importance of securing a surety bond and work diligently to streamline the experience.

By engaging with Jurisco, you ensure that your surety bond needs are met with expertise, efficiency, and thorough attention to detail. Trust in their proven track record and allow their team to facilitate the bonding process for you.

Whether you're ready to begin or have additional questions, Jurisco is prepared to assist. We encourage you to reach out, fill out a surety bond application, or initiate a call with Jurisco today. Let their experienced team provide you with the surety bond solutions you require to move forward with confidence.

Have more questions about surety bonds in your state? Contact Jurisco.

Trust the Surety Bond Experts

The Jurisco lawyer-trained staff are here to help you today.