The underwriting process for surety bonds involve researching and evaluating the risk of bond applicants. Though every surety company creates their own diverse criteria and guidelines for underwriting, the same three basic factors are habitually observed.
First, the surety company takes capacity into consideration, or whether the prospective principal has the ability and skill to perform the task at hand. Second, capital is investigated, or if the company has the financial condition to justify approval of the risk. Third, the surety company inspects character of the applicant. Are there any indications the applicant is of poor character and won’t be able to perform due to certain reasons?
It’s important to note if the underwriter does not approve the bond attributable to the principal’s current qualifications, collateral may be able to bridge the gap to gain them approval. Myriad bonds are given on this basis and deliver protection in case the principal is unable to effectively perform.
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Colonial Surety offers surety bonds online instantly! With us, you never have to go through brokers, agents, or middlemen. Simply get a quote online, fill out the information requested, satisfy the underwriting requirements, and enter in your payment of choice. You can then print or e-file your bond.
We are rated “A” Excellent by AM Best Company and are licensed to give bonds in all fifty states. Located in Woodcliff Lake, New Jersey, we have been in business since 1930. There’s a better way to purchase surety bonds. Contact us today to get a surety bond today.