Pennsylvania Surety Bond Types
Those who secure a surety bond in Pennsylvania provide protection for the people of the state by financially guaranteeing the quality of their work. The specific type of surety bond the individual or business gets determines the type of protection it provides, as not all bonds work the same. While understanding the bonding process in Pennsylvania might seem complicated or confusing at first, a little research could go a long way in protecting your investments.
The Pennsylvania state government often requires individuals or businesses to secure a surety bond to discourage them from participating in fraudulent activities. If the principal (or bonded entity) chooses to behave unethically, then the consumer (or obligee) can make a claim against the bond. If the claim is proven to be valid, then the surety company would compensate the wronged obligee for damages, and the principal could be left paying retribution up to the bond’s full value. Thus, unlike an insurance policy that covers predictable financial losses, bonds aim to prevent unethical business practices-or else face reparation.
How much will I pay for a bond in Pennsylvania?
Surety bond rates and premiums in Pennsylvania vary based on a number of factors, including the principal’s credit history and the type of bond being issued, among other determinants that a surety company might consider. Surety bonds usually cost between 1 and 3 percent of the bond’s face value. For instance, if the desired bond amount is $10,000, the bond would probably cost around $100 to $300 for a typical principal with a good credit report. However, the cost of the bond will be higher if the principal’s financial history has negative marks, as the surety will be taking a greater risk in backing the principal’s work. If a principal has a poor credit history then he or she will need to find surety bond agency like Surety Bonds.com that issues non-standard (or bad credit) bonds to high-risk clients.
How can I get a bond in Pennsylvania?
If you already know which Pennsylvania surety bond you need, try browsing our collection below to see if we have the form on file. If you don’t see the exact one you need, contact one of our friendly surety bond specialists to help you find it.
If you’re not sure which Pennsylvania surety bond will give you the best type of protection, check to see if your state or local government has established bonding rules or regulations for your industry. The state’s department of licensing website usually provides a great deal of information about bonding requirements, which simplifies the process. For example, professionals in Pennsylvania-from auctioneers to contractors-get bonded to protect their clients.
Your Pennsylvania surety bond agency
To learn more about these and other bond types, try browsing our site for information about different kinds of bonds and how they work. As always, contact a friendly surety bond specialist if you need assistance at any point during the process.
Once you have a basic understanding of the process, applying for a bond online can be completed in just a few minutes. If you have a good credit report and financial history, you can usually get a price quote back quickly. The extra effort you make to secure a surety bond for you or your business is an easy and worthwhile investment that offers a great deal of protection-and we’re here to help.