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4 Things to Know About Buying Surety Bonds Florida

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There are a few key things to know before you enter the world of bonds, all of which will help ensure that you get the right bond from the right agent at the right cost. Here are 4 of the most important things you need to know before you buy a Surety bond Florida.

1. Surety Is Different from Insurance: It is obvious that these insurance companies generally sell bonds, but bonds are never like insurance policies. A surety bond ascertains compliance with regulations and provides a guarantee of performance in order to protect the interest of a third party, while insurance policy is a two-party arrangement that generally protects the insured party. Acquiring a surety bond in Florida involves three specific parties: the principal that means the business or individual buying the bond; the oblige which is some departmental agency or business requiring the bond; and the surety who is known as the underwriter or issuer of the bond.

2. There Are Different Ways to Know What Bond You Need to acquire - unfortunately, there is no one-size-fits-all surety bond for various industries. Some common types include contractor license and permit bonds, freight broker bonds, construction bonds, title bonds and auto vehicle dealer bonds. So how do you get to know which one you require, or if you need one or more at all? The answer usually lies within the industry's governing unit who acts as the obligee who sets the constraints for the industry.

3. Variety of Resources Are Available - Your surety bond company will serve as your primary touch point for all things related to bond. However, there are many other resources available to you that you should keep in your arsenal should you need added information. It also helps to have a personal contact with your obligee in case you have queries about your individual industry and the laws of the governing city. The U.S. Small Business Administration also offers great resources for industries where bonds are essential.

4. You Can issue a Bond Even if You Own a New Business - Many people pretend that, in order to obtain a surety bond, one must have a well-established company with a impeccable track record. But the fact says that the age or reputation of your business matters little and many new businesses need to obtain a bond in order to get their license to run their operational activities.

Mark Rodgers

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.