What Are the Requirements for Getting a Surety Bond?

Surety bonds are issued based on your character and financial condition.

The requirements for getting a surety bond are based upon your business and personal reputation, as well as your financial track record. The better you look in these categories, the easier it will be to get bonded.

Reputation and References

A good reputation for operating a well-run and honest company that can be verified through personal references is the first requirement for qualifying for a surety bond.

Reliability

You record of completing project contracts will be important to the surety, especially considering the surety will only become liable on its bond if you fail to perform on your contract.

Experience

The surety company will be interested in knowing your experience in performing similar contracts to the one you now want a bond for. Your company should have the necessary equipment and qualified employees to perform all aspects of the project contract.

Financial Condition

You current business and personal financial condition will be important to qualifying for a surety bond. The surety will want to verify that you have the ability to meet your financial obligations.

Indemnity

The surety will require an indemnity from you and your company in which you guarantee to hold the surety harmless for any losses on the bond.

References

• The Surety & Fidelity Association of America
• Surety Information Office