surety bond

dan asked this on July 05, 2017 in Surety Bonds

if i obtain a surety bond, and make my annual payments. do i have to pay the full face value of the bond when it reaches maturity?

Danielle answered this on August 07, 2017

Hello Dan,

Surety bonds are a specific type of insurance policy, which means they do not work like financial bonds. Surety bonds are required by entities seeking to guarantee that a job or obligation will be fulfilled as expected. The individual or company that purchases the bond pays an annual premium that's a percentage of the total coverage amount, which is a similar model to other lines of insurance. Most bonds must be renewed annually as long as the obligation remains in effect, but this varies by specific bond types. For additional questions or to request help with a bond you need, please call our team at 1 (800) 308-4358.