How to Buy Surety Bonds in Georgia

When you provide business or contracting services for government agencies or some private contractors, you will be required to post a surety bond. A surety bond supplies the contractor with a guarantee that the services will be provided as agreed. Surety bonds allow you to obtain contracts or bid on publicly funded jobs. Surety bonds are simple to obtain in the state of Georgia through surety bond companies or brokers.

Things You'll Need

• Blank surety bond from contractor
• Personal identification

Instructions

1. If your are requested to post a surety bond by a contractor or employer in the state of Georgia, obtain a blank copy of the bond from them, so that the surety bond company will know what is required for that particular bond.

2. Locate a licensed surety bond company in the state of Georgia. If the company has a website, review it to ensure that the company has a license to write surety bonds in the state.

3. Compare references for surety bond companies to ensure that their clients are satisfied. The contractor may suggest a certain surety bond company that he has worked with in the past. Compare that company with others to make sure you are going to get the best service and rates. Choose the company with the best rates and best customer feedback, and one that is well-established, especially if this is your first time posting a bond. A good surety bond company will walk you through the process and answer any questions you might have.

4. Apply for the surety bond. Some surety bond companies allow you to apply online, which can save time and effort. If the surety bond company takes credit-card information on its website, ensure the site is secure. The website itself should feature a seal that says "Secure Server." Once you are directed to the page where you will enter your credit-card information, make sure the URL of the page starts with "https" and not "http". If the surety bond company does not maintain a secure website, either apply in person or choose another company.

5. The surety bond company will calculate the premium you will have to pay for the bond. The premium is generally 1 to 3 percent of the face value (the value of the contract), but could be more or less depending on the guarantee being offered. Once you have paid the fee and the bond is written, you can present the bond to the contractor.

Tips & Warnings

• Find a surety bond company that specializes in bonding in the state of Georgia, especially if this is your first bond.

• Do not choose a surety bond company that is not licensed in the state of Georgia.