The Basics of Surety Bonds
A Florida surety bond provides a financial guarantee and consists of three parties – the principal, the obligee, and the surety. The principal obtains the bond and is responsible for claims against it, while the obligee can file claims for damages if the bond’s terms are violated. The surety guarantees payment to the obligee for valid claims and expects repayment from the principal, including interest and fees.
Benefits and Application Process
Surety bonds benefit all parties involved. They ensure that businesses adhere to relevant laws and regulations, thereby protecting both customers and governments. To apply for a surety bond in Florida, most companies offer a straightforward online application process. An underwriter will assess the risk associated with bonding you, taking into account factors such as your credit score, where good credit typically results in a lower premium.
Cost and Requirements for Businesses
Surety bonds are required for various Florida business licenses to ensure compliance with government agency rules, whether it’s for motor vehicle dealers, contractors, public adjusters, or travel sellers. Our company provides the necessary Florida surety bonds promptly and professionally.
The price for obtaining a surety bond can vary widely, from $100 to $1,500, typically representing 1% – 15% of the bond amount, depending upon the job’s requirements. It’s imperative for companies and contractors to be bonded to operate within Florida, as surety bonds are distinct from insurance policies, focusing on protection for the third party instead of the policyholder.
Price and Selection of a Surety Bond Company
Choosing a surety bond company usually depends on expertise and pricing. Online application makes the process accessible, after which an underwriter evaluates your risk profile. For contractors, being bonded is crucial to reassure customers of reliable service delivery, with rates that can start as low as $7 per month.
Note: Repetitive and similar sentences have been removed from the original text for clarity and conciseness.