Instant issue bonds

Gertie asked this on October 20, 2017 in Performance Bonds

What are examples of instant issue bonds?
Don't all bonds require credit scoring and some form of background check on the client

Danielle answered this on January 25, 2018

Hello Gertie,

Not all bonds require a credit check or underwriting.

The underwriting criteria and documentation required before a bond application can be approved varies widely based on the risk associated with the specific bond form needed combined with the risk of the individual applicant.

Some bonds, such as notary bonds, require no underwriting and cost the same for every single client. A few other examples of instant issue bonds include collection agency bonds, tax preparer bonds, vehicle title bonds issued >$25,000, and many local compliance license and permit bonds. Remember, these are just a few examples.

Riskier obligations typically require, at minimum, a review of all owners' credit reports. Types of bonds that typically require limited underwriting include, but are not limited to: auto dealer bonds, telemarketing agency bonds, freight broker bonds, and state required contractor license bonds.

Bonds related to contracted construction projects, however, typically require a great deal of underwriting with supporting documentation at the discretion of the underwriter.

For further guidance on the type of information you'd need to provide for the specific type of surety bond you need, please call our team at your convenience between 7 AM and 7 PM CST Monday - Friday to speak with a surety expert who can guide you through the process.