The application contains all the necessary information that is on the bond copy. We require this so we automatically issue the bond through our system. The information from the application is mapped exactly where it needs to go on the bond form.
It depends on the requirements for the bond. We have thousands of instant issue bonds that automatically issued to your immediately after purchase. If a bond requires additional underwriting it will be referred to our underwriting department who will be in contact with you within 48 hours.
Indemnity is an agreement between the principal and the surety company stating that if the surety company pays out money than the principal will pay them back. Surety is a credit product so you can think of this similarly to a letter of credit where if the bank gives you a loan then you would be required to pay the money back. Essentially that is what surety is as well, but the principal would only need to pay if there was ever a claim on the bond and the surety paid out money.
Yes, our bond partner, Propeller Bonds, will send out an email 60 and 30 days out that your bond if up for renewal a which point you will be prompted to make a payment. If you are enrolled in autopay the card on file will be charged for the bond. And it will automatically renew. Any documentation required, a continuation certificate or a new bond form, will also be provided. If another payment method was used or the card expired we will notify that we need updated payment information in order to renew the bond or it will be cancelled.
There are several differences. Insurance is an agreement between the insured and insurance company. Losses are expected and not recoverable. Premiums paid cover both costs and losses. Whereas, surety is a three party agreement between the obligee, principal and surety company. Losses are not expected and recoverable (because of the indemnity agreement). Premiums cover costs.
The surety will get notified by the Obligee that they are claiming on the bond. A claim does not automatically mean a loss. The surety will work with the Principal to try and resolve the issue or reason for claim before paying out any money.
Surety is a credit product and a lot of time guarantees that the Principal will do an action or pay money. Therefore the surety company wants to make sure the Principal is credit worthy in order to support the bond. Very similar to how a bank would evaluate a company to provide a loan. Rest assure our credit check is a soft inquiry.
Yes, If accepted by the obligee we will electronically filed the bond on your behalf. If your bond can be electronically file you will be advised of this in your purchase email ( EX. We currently electronically file all WA, OR, CA contractors license bonds).