Frequently Asked Questions

Q: What is a surety bond?

A: A surety bond is a three-party agreement between a principal, an obligee, 

and a surety.


1. Principal: the person or company who needs the bond


2. Obligee: the entity who requires the bond 

and is protected by the bond


3. Surety: the company who issues the bond


Essentially, a surety bond obligates you will fulfill and perform your duties. If you fail to do that, someone can make a claim against your bond.

Q: How do I know if I need a surety bond?

A: The obligee (the entity that requires a bond for you to legally operate) will let you know if you need a surety bond. 


Surety bond requirements vary depending on what you are doing, your occupation, and your location.

Q: How much does a surety bond cost?

  A: The cost of a surety bond depends on many factors including the type of bond, the term of the bond and in some cases the credit history of the owner.

  • You will not need to pay the full bond amount to get bonded in most cases. 


  • You will pay anywhere between 1-25% of the total bond amount.


  • You only need to pay for your bond once a year on most bonds.

Keep 'em comin!

Q: What is the process to get my surety bond?

  

A: Here are the steps to get your surety bond:


  1. Submit your application
  2.  An underwriter will evaluate your risk and determine your bond rate.
  3.  A quote will be sent to you.
  4.  Sign indemnity agreement
  5.  Pay for your bond

  

After you pay for your bond, the surety company will mail you the completed bond. Some bonds can be downloaded right after you pay for them, but not all bonds.

 Yep, it's just that easy.

Q: What is an indemnity agreement?


A: An indemnity agreement is a legal document that fully discloses your obligations in the surety bond agreement.



 It allows the surety bond company the right to recover for losses paid out on your behalf.

Q: I'm an Insurance Agent. Will you do business with me?

Of Course! We require our appointed agents to complete an online appointment application. This will give you access to our SureQuote system to submit your bonds quickly and
get the best service from our awesome
surety team!

All appointed agencies must maintain proper licensing and errors & omissions insurance as well as be in good standing with all Federal or State finance or insurance regulatory agencies to be a Hancock Surety Partner.