How to Obtain Surety Bail Insurance

Obtaining surety bail insurance.

Anyone who operates a bail bond company is usually required to obtain surety bail insurance in order to stay in operation. A bond company is not required to obtain this insurance if it can prove that it has enough liquid assets to cover the cost of any liability. In essence, surety bail insurance is an insurance policy taken out by the bond company that covers the cost of any money lost if a client skips out on the bail.

Things You'll Need

• Build-up fund

Instructions

1. Start a cash build-up fund. This is simply a large amount of cash that acts as a security deposit to the surety company. The larger the build-up fund is, the lower your surety rates and premiums will be.

2. Evaluate the rates for the insurance among several surety companies. The average rate is 2 percent for each $1,000 bond that your company issues. The rate increases or decreases based on how long you have been in business and your forfeiture rate (number of clients that skip bond).

3. Evaluate the benefits that each company provides to you. Some companies provide discounts on training, discounts on business software and 24-hour support in addition to basic insurance options.

4. Decide which surety company offers the best options for you and sign up for the policy.

References

• BailInsurance.com