Bonds

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We Simplify the Bond Process

Bonding is important to business, but it doesn’t have to be complicated.

Our expertise, optimized with industry leading technology, delivers the experience you’re looking for.

Access to over 600+ bonds including some the industry’s most popular products below.

Contract Bonds
  • Performance Plus Program

  • Subdivision Bonds

Commercial Bonds
  • INSTANT License and Permit

  • Notary Bonds

  • BMC84 Program

  • Oil & Gas Program

  • Auto Dealer Bonds

  • Mortgage Bonds

Fidelity Bonds
  • ERISA Bonds

  • Business Services

  • Employee Dishonesty

Bond FAQ

A surety bond is a legally binding contract between three parties: obligee, principal and surety that ensures certain contractual obligations will be met.

The cost of your bond will vary based on your bond amount, credit and various underwriting factors.

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.

This is a contract bond that is required in order to perform work on public projects. Sometimes private owners also require a bond as well.

For insurance, reach out to your insurance agent. For bonds, you can find your bond, complete the application, pay for an receive your bond all through our website.

Yes, all of our carriers are A rated by A.M Best.

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.

We accept all debit and credit cards. We do also accept an electronic check or a mailed check.

At this time we do not offer this option.

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.

Typically the obligee (entity requiring the bond) will advise you on what effective date should be used. In most instances it should match the date of your license/ the date the work project begins.

The obligee (entity requiring the bond) will determine the amount. It is usually a statutory requirement.

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 entity requiring the bond. Often a municipality or the federal government.

Obligee (entity requiring the bond), Principal (similar to an “insured”), and Surety Company (company guaranteeing the bond, usually an insurance company).

You will need to ask whoever is requiring it of you to figure this out. Is it tied to a license or a court or a performance?

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.

The first year is fully earned premium. Renewals can be prorated if cancelled.

You need one if the government or entity is requiring it of you in order to do an action (obtaining a license or performing an action).

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.

Collateral is money that is required by the surety company in order to support the bond.

Commercial surety are bonds that fall under a few categories: license and permit and court.

Contract bonds are bid bonds and Performance and Payment bonds.

You will need to ask whoever is requiring it of you to figure this out. Is it tied to a license or a court or a performance?

It depends on the type of surety bond you are requiring. Low credit could result in a higher premium or the bond being declined to be written by the surety company.

The length of time the bond is enforce, usually a year.

This is when the term expires and the bond renews.

Yes. Usually the term is annually.

Depends on the type of bond and information required. Most of our bonds are instantaneous while others could take 1-2 business days.

Please contact your underwriter. If you are unsure of that person send your question to support@propellerbonds.com

We will contact with additional information either or you will receive an email stating you need to pay for your bond. Once the bond is paid for it will be issued.

This will have your bond documents. In most cases you need to sign the bond and then turn it in to the Obligee (entity requiring the bond).

Contact us (your underwriter or support@propellerbonds.com) and let us know that you need the bond mailed. We can discuss if you need it overnight or normal mail.

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).

You will be sent a email prior to your renewal to pay for an obtain your renewal bond. If you are enrolled in autopay the card on file will be charged for the bond and it will automatically renew.

We will automatically send those documents once the renewal is paid.

This allows a person to send to another to complete the bond transaction.

Yes, we have a save for later button. You will receive an email with the link to complete the transaction.

A soft pull. Will not affect your credit score. Propeller pays all credit check fees.

The surety requires spousal indemnity to ensure assets over to them if the surety has to collect from you due to a payout on a claim.

Sign it and turn it in to the obligee (entity requiring the bond).

Because it is required by statute. But also, you can free up your letter of credit for other things.

Yes, If expedited shipping is required.

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