how long is a surety bond good for?
is a bond purchased for a set period, for example for a year? and if so, does that mean the bond must be renewed, and another full premium paid, each year?
Hey Sabine, thanks for stopping by!
Each bond is issued for a certain time period, which is explained in its legal language. For example, most license and permit bond types are issued for one or two year terms and, yes, must be renewed. And yes, surety renewals do require another full premium payment.
Some bonds, such as contract bonds used in the construction industry, are only issued once and are only active for a certain amount of time. If no claims are made during that time, the bond expires.
Really it depends on the type of bond you need and how long its specific term is.
Do you have any other specific questions about bond expiration dates/renewals?