What are surety bonds? How do they work? And what’s the difference between bail and surety bonds? These are all common questions that people have about surety bonds.
So, keep reading to learn everything you need to know about these important law instruments! This blog post will answer all of your questions and give you a comprehensive guide to surety bonds.
What are surety bonds?
A surety bond is like an insurance policy for you. It’s a three-party agreement between the principal (the business owner), the obligee (the person or entity to which you promise something), and the surety company (your insurance company).
What does it cost?
The bond cost is usually a small percentage of the total amount you’re promising to pay. When you purchase this type of insurance, your financial institution will take care of all necessary paperwork to make sure you get bonded as quickly as possible!
How do they work?
Simply put, surety bonds are an agreement between three parties: your company, the obligee, and the surety company. The principal (your company) agrees to take on an obligation, such as paying a specific amount of money or fulfilling a contractual obligation. The obligee is the person or entity you promise something to, like an insurance company or lender. And lastly, the surety company is your insurer, who issues the bond (insurance policy), agrees to pay the obligee if you default on your promise, and helps make sure that everyone involved complies with all terms of the bond.
Are there any alternatives?
Surety bonds are the safest way to guarantee an obligation, but they aren’t the only option. If you don’t want to pay for a bond, you can use assets as collateral instead of buying one. For example, you could pledge real estate or equipment as part of the terms of your agreement with the obligee. And if you’re a minor, you could ask your parents or another adult to stand as guarantor of the bond.
How do I get bonded?
You can purchase surety bonds fairly easily, but your financial institution is the best place to start. With their help, you’ll be able to find a bond that fits your needs and budget.
What’s the difference between bail bonds and surety bonds?
Surety bonds are like insurance policies against failure to meet your promises, while bail bonds secure a defendant’s appearance in court. In most cases, bail bond agencies charge a 10 percent fee on the full bail amount to provide this service for you. However, with surety bonds, your financial institution will handle all necessary paperwork and take care of the process from start to finish!
To have your bail prepared by the number one bail bonds company in Indiana, contact De Laughter Bail Bonds. We’ve been in the business for the past ten years and have closely monitored our clients’ cases. Our 24-hour bail bond service radius covers the whole of North Manchester, Indiana. To have our licensed bondsmen and know more about our services, contact us today.
