A surety bond is one of the common types of bonds. If you are taken to jail, you’ll be required to pay a set bail amount before you can be released. You’ll have to pay the bail amount in full but it’ll be given back once you appear in court. The bail amount is given back minus any court fees. If you can’t come up with the bail amount, you can obtain a surety bond. Surety bonds cost 10% of the total bail amount. Surety bonds offer an easy way to get bailed out.
What is a Surety Bond?
A surety bond is also known as a bail bond. It is a written agreement to guarantee the performance of an act. The three parties involved in a surety agreement are:
- Surety: The surety company that ensures the obligation is done. The surety is held liable when the principal fails to perform the promised act.
- Principal: The person who buys the bond and performs the promised act.
- Obligee: The party that receives the benefit of the surety bond.
Surety Bond Process
Most people don’t know how to get a surety bond. Once you get informed that you need a surety bond, it is a good idea to research the bond requirements. The first thing you have to do is get in touch with an agency that provides surety bonds. Such agencies have enough knowledge and experience about bond requirements, have competitive pricing, and will help you secure the surety bond. Here are the steps you should follow to get a surety bond in Minnesota.
Apply for the Bond
The first thing you have to do is fill out an online application and request a free quote. You’ll be required to provide basic information like your contact information, type of bond, and the amount. You may also be requested to provide occupational license numbers, social security numbers, and employer identification numbers.
Get the Bond Rate
Once you submit your application, the process starts. The surety company will look for the best rate to get your bond. You’ll get a quote within a short time. Once your application is received, your submission is categorized depending on how risky it is and you’ll be assigned a premium.
Using a co-signer or a collateral during your surety bond application will increase your chances of getting approval and a lower premium. You can provide collateral in the form of cash. If you have a co-signer with a good credit history, you can qualify for a lower rate.
Buy the Bond
Once the bonding process has been completed, you’ll have to pay a premium.
How Long Does it Take to Get a Surety Bond?
Your application can be approved on the same day and you’ll get your surety bond the following day. When filling out an application, you need to provide information about your name, social, security, address, and the bond required.
Who is Protected by a Surety Bond?
Surety bond does not provide coverage to the policy owner. However, it gives a financial guarantee to suppliers, customers, or state taxpayers. If the principal violates the terms and conditions, a claim is filed against the surety bonds.
Types of Surety Bonds
There are three common types of surety bonds you can choose from in Minnesota. You can choose from one of the following.
- Court bonds: They are requested by the court and used when a person wants to appeal a judgment.
- Contract bonds: It is required when a contractor wants to bid on a construction project.
- Commercial bonds: They are necessary for any business license in Minnesota.
It’ll only take a few minutes to apply for a surety bond. All you have to do is fill out an online application. We will get in touch with more information. Contact us today to get more information on bonding requirements.