California Surety Bond Types
Various government agencies in California require business owners and other working professionals to purchase surety bonds before they can perform certain tasks. Understanding California surety bonds can alleviate the stress that comes along with certain processes, such as getting a business license, securing a construction contract or becoming a notary. As such, the experts at SuretyBonds.com are here to answer your top questions about surety bonds in California.
How do I get a California surety bond?
The first step to getting your California surety bond is to complete an application. You can do so by calling 1 (800) 308-4358 between 8 a.m. and 7 p.m. central Monday through Friday. Or, fill out our online form to the left at any time, and a surety bond specialist will call you as soon as possible.
You’ll receive a price quote within one day, and once you approve the cost your specialist will issue the bond. When the bond has been executed, you’ll immediately receive a copy via e-mail. Then we’ll mail you the original bond, which you’ll have to submit to whoever is requiring it. If you’re in a time crunch, you can choose our overnight shipping option and have the bond in your hands the very next day.
How much does a California surety bond cost?
Because SuretyBonds.com works with a number of underwriting companies, our surety specialists can find our clients some of the lowest surety bond premiums available. Furthermore, SuretyBonds.com can provide California surety bonds to 99% of applicants regardless of their credit score or other financial credentials.
in California vary for a number of reasons, such as the specific bond being issued and the principal’s financial standing. Applicants with good credit typically pay a premium that’s calculated as 1 to 5 percent of the bond amount. So, if the bond amount is $10,000 the premium would likely be between $100 and $500.
Rest assured if you don’t have good credit, though, because SuretyBonds.com works with markets that specialize in issuing bad credit bonds to those who don’t qualify for the standard market. Qualified applicants can even finance their payments over time so they don’t have to pay the full premium upfront. The best way to determine what your California surety bond will cost is to contact our surety specialists. They’ll get you a California surety bond price quote within one business day.
What are California surety bonds?
Surety bonds in California are essentially used to guarantee individuals comply with laws set forth by the state. Each surety bond that’s issued is a legally binding contract that brings together three separate entities in an effort to protect consumers.
- The principal is the business or individual that buys the bond to guarantee work performance.
- The obligee is the government agency that requires the principal to be bonded.
- The surety is the agency that sells the bond and backs its financial guarantee.
If the principal fails to fulfill the bond’s terms, then a claim can be made against the bond. If the claim is valid, then the principal will have to compensate the obligee for damages. If the principal cannot do so, the bond would require the surety to pay reparation up to the full bond amount.
Who receives California surety bond protection?
By providing financial security, surety bonds in California protect businesses, consumers and government agencies alike. The exact protection varies depending on the specific legal language found on a California surety bond.
- Appraisal management bonds protect consumers from fraudulent or other unethical business practices.
- Mixed martial arts bonds ensure government agencies receive appropriate tax payments.
- California contractor license bonds protect those who invest in construction projects.
- Real estate broker bonds in California protect property owners and buyers during a real estate transaction.
These are just a few examples of the hundreds of ways surety bonds provide protection in California. Although getting a surety bond in California might seem complicated or confusing at first, a little research could go a long way in protecting your investments, and SuretyBonds.com is here to help you with every step of the process.