- Licensed in MD, PA, VA, OH and FL
- Electronic bond delivery when available
A surety bond is a three-party agreement in which a surety company guarantees that a person or business will meet a specific obligation. If they do not, the bond protects the party that required it.
Bonds are required for many reasons: to get a license, to bid on and finish a construction contract, to serve as a court-appointed fiduciary, or to meet a business obligation. If you were told to get one, the paperwork should say which bond and for how much.
The principal, the obligee, and the surety. Each has a different role.
You or your business. The principal is the party that has the obligation and buys the bond.
The party the bond protects, such as a government agency, project owner, court, or customer. The obligee is usually the one that requires the bond.
The company that issues the bond and stands behind the principal’s promise. An agency like The Bond Agent helps you apply, but the surety issues the bond.
The surety backs your promise to the obligee, and you agree to repay the surety if it has to pay a valid claim. The steps usually look like this:
An agency, owner, court, or contract sets the bond name, amount, and form.
The surety looks at the bond and at you. Depending on the bond, that can include credit, financial statements, experience, and the project or obligation.
You sign the required paperwork, pay the premium, and the surety issues the bond for filing with the obligee.
If the principal does not meet the obligation, the obligee can make a claim. The surety reviews it under the bond’s terms.
If the surety pays a valid claim, it can generally seek reimbursement from the principal under the indemnity agreement.
No. Insurance generally protects the insured against covered losses. A surety bond guarantees a specific obligation to another party, and the principal can be required to repay the surety if it pays a claim.
Getting a bond does not satisfy general liability, workers’ compensation, professional liability, or other insurance requirements, and insurance does not satisfy a bond requirement. Many licenses and contracts require both.
Usually no. You pay a premium to obtain the bond, not the full bond amount. A $25,000 bond does not normally cost $25,000.
The price depends on the type of bond, the amount, your credit and financial information when required, your experience, and the surety company. Different surety companies can view the same applicant differently.
It is the agreement in which you promise to repay the surety if it pays a valid claim on your bond. Most bonds require one.
Read it before you sign. It is the reason a bond is not a free safety net for the principal. It is a guarantee that the surety expects to be repaid for.
The surety industry groups bonds into contract surety and commercial surety, with fidelity coverage as a separate product. On this site we organize them by what you were asked to get.
Bonds required to get or keep a license or permit, such as contractor, auto dealer, freight broker, and mortgage bonds.
Business bonds such as customs, utility deposit, and self-insured workers’ compensation bonds.
Contract bonds for construction work, including bid, performance, and payment bonds.
Bonds required in court proceedings, including probate, fiduciary, appeal, and injunction bonds.
On a contract bond, if a contractor defaults, the surety may provide technical or financial support, arrange for another contractor, or pay the bond amount, depending on the bond and the situation. What it does is decided case by case.
It depends on the bond. Smaller bonds can be written with limited underwriting. Larger bonds can involve credit, financial statements, work history, and information about the obligation.
If your credit or financials are not perfect, do not assume you cannot be bonded. Surety companies do not all underwrite the same way.
Send us the requirement. We’ll identify the bond, check the amount and form, and tell you what the surety needs for a quote.
From first quote to final delivery, every part of the process is designed to be fast, transparent, and backed by real people.
Send us whatever you were given. We’ll start with the paperwork.
The Bond Agent | 3655A Old Court Rd, Suite 13 | Baltimore, MD 21208
