Ohio Surety Bonds: Finding the Best Rates for Performance, Fiduciary, Contract and Permit Bonds

If you are required to carry some type of surety bond in Ohio. You might at first be overwhelmed about knowing where to start. Shopping for, and buying a surety bond is similar to buying insurance in many ways, and also quite different in other ways:
   
      How a surety bond is similar to insurance:

• Like insurance, you have quite a lot of different companies to shop around for the best rate.
• Surety bonds can be purchased through an insurance agent (or a surety bond broker, or a surety bond company directly).
• Premiums are rated (calculated) based on many of the same factors that insurance companies rate insurance quotes.
• Independent insurance agents or surety bond brokers can do the shopping around for you with different surety bond companies to find you the lowest rate.

      How a surety bond is different from insurance:

• While there are many different insurance products on the market, there are way more surety bond products. There are litterally thousands of different kinds of surety bonds.
• Instead of going through individual insurance companies to find the best rate, agents go to large surety bond brokerage firms to find their customers the best rate. Because of the enormous amount of different types of surety bonds, this is a must because no one person or agent could possibly become familiar with all the different type of bonds out there.
• Credit rating plays a factor in both insurance and surety bonds. But credit is much more of a factor with most surety bonds as compared to insurance. That's not to say that someone with a bad credit record can not get a surety bond. It just means that you may have to shop around a little harder to find what you need at an affordable price.
• When a claim is paid through a surety bond, the company that wrote the bond will likely go after the person who bought the bond. The bondholder has failed to meet a requirement, neglected an obligation, or failed to perform a duty. This is much different than having a car accident, for example. Insurance companies will not go after the policyholder. But a surety bond company will go after a bondholder who has not upheld his/her end of the deal.
• Insurance policies are regulated mostly by state laws. But a surety bond can be a local, state or federal type of bond.

       Types of Surety Bonds: This is not an all inclusive list because of the wide variety of different types of surety bonds. But most bonds fall in one of the following categories:

• Performance bond
• Fiduciary bond (probate)
• Contract bond
• Commercial bond
• License or permit bond
• Court/Judicial bond
• Public official bond
• Guardian ship bond
• Fidelity bond

      How do I start the process of acquiring a surety bond in Ohio?


     Before you begin to get a quote for a surety bond, it's very important to know exactly what type of bond you need, and what amount the bond needs to be written for. Once you have that information, you can begin to look for surety bond prices by getting a surety bond quote.


      The Next Steps:

• Once you have filled out a simple quote form, an agent/broker can then shop your information around with the surety bond companies/brokerage firms that they carry. These companies will then know exactly what is required from there. The agent will then send you out any info you need to fill out and send in to complete the quoting process. This usually includes:
• Filling out an application (you may be asked to fill out more than one application. If so, that will only help you quote through more companies to give you a possible lower premium). Applications are short, usually only one or two pages. It's well worth the time to fill out any additional apps if you're asked to do so, as it gives you the best chance for a lower price.
• Provide any needed paperwork. Many surety bonds will require some documents in order to complete your quote or put a bond in force. You want to get those in as quickly as possible.
• Jump through any other hoops that the bond may require. This varies greatly from one type of surety bond to the next. But overall, this is usually not too much of a headache.

     Final steps:

• Once the surety bond companies get the info they require to run you a quote, they will review your application, and either offer coverage or deny coverage. If they offer coverage, a price will be quoted. You then will be able to see the choices and prices that you can choose from.
• Once you have found a bond that you need for a price that's affordable, your agent will help you take it from there, as far as putting the surety bond in force. Each bond is different, as is each bond company. They all have different procedures as far as putting the bond in force. Your agent will help you do the grunt work, and make the process as simple for you as possible.

    Summary: Buying a surety bond can be much more complicated than compared to buying insurance. But if you go through an agent or broker, they can make the process much more simple and much less aggravating as opposed to trying to do it all by yourself. That's what agents/brokers are there for. Take advantage of them!


     If you would like to get a surety bond quote through my agency, I will be happy to help you with every step along the way. I currently use two major surety bond brokerage firms to help find you the best rate. Both firms  use dozens of surety bond companies to accommodate you as best that they can. And as always, I handle all quotes personally and privately. I never share or sell your information to anyone.


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