Surety Bond Renewal

How to Renew Your Surety Bond | Guide and FAQs

The surety bond renewal process is quick and easy with SuretyBonds.com. However, it’s common to have questions about the renewal process and surety terminology. 

In this guide, we answer common questions about how to renew a surety bond, bond term types, documentation, surety renewal costs, and much more!

What Is a Surety Bond Renewal? 

A surety bond renewal is an extension of an existing surety bond term provided by a surety company.

All surety bonds have a valid term during which the surety company takes on the risk of the bond in exchange for a paid premium. When the term expires, businesses and individuals may require a surety bond renewal to maintain license requirements and/or avoid legal repercussions. 

Before renewing your bond…

Here is a refresher on the three parties involved in a surety bond. You’ll see these terms used frequently:

  • Obligee: The entity requiring the bond, often the government agency in charge of regulating or licensing an industry (i.e. The California Department of Motor Vehicles)
  • Principal: The individual or business that must obtain a bond as required by the obligee (i.e. you)
  • Surety: The insurance company that financially backs the principal’s bond by guaranteeing money is available to cover potential claims (i.e. SuretyBonds.com )

the three parties involved in a surety bond

When to Renew a Surety Bond

The best time to renew a surety bond is at least 30 days before the renew-by date

Many surety bonds have a set expiration date, while others are continuous. For bonds with a specific term length, the renewal period begins 90 days before the end of the current term. 

Once your surety provider provides your renewal quote, renew your bond as soon as possible to avoid the risk of a lapse in coverage due to unexpected complications.

How to Renew Your Surety Bond

Your exact renewal process depends on the requirements set by the obligee. To renew a bond, the surety company will reevaluate the bond risk and provide an updated quote. Typically, the principal only needs to pay the new term premium, but sometimes supporting documentation is required. 

The SuretyBonds.com Renewal Process

  1. Pay your premium online or over the phone
  2. Sign and submit any additional documentation, if required
  3. File renewal documentation with your obligee, if required

Watch this quick video to learn more about our bond renewal process: 

Understanding the Four Types of Bond Renewals

The surety provider will process your renewal according to the obligee requirements and the details on your specific bond form. You can identify which of these four surety bond term types you have on your current bond form:

Bond Renewal TypeWhat You'll ReceiveObligee Follow-up

Term Bond

A new bond

File renewal bond with the obligee

Continuation Certificate

A continuation certificate

File certificate with the obligee

Continuous Until Canceled

No new documentation unless you switch insurance companies

No further action unless you switch insurance companies

Continuous Until Released

No new documentation

No further action

What Is a Continuation Certificate? 

A continuation certificate is an official document issued by a surety company to formally renew a previously issued and filed bond. Some obligees require continuation certificates to verify renewal. 

If necessary, SuretyBonds.com will deliver your continuation certificate once you pay your premium. Upon receipt, you’ll need to file it directly with the obligee

What If My Bond Is “Continuous Until Cancelled” or “Non-Expiring?”

If your bond term is “continuous until released,” “non-expiring,” or “continues until cancelled,” you simply need to pay your renewal invoice and your bond remains active

What if I don’t pay my renewal premium? You are still liable for the bond, including any potential claims, until the obligee formally cancels the bond.

More Surety Bond Renewal FAQs

How do I know if my surety bond is up for renewal?

If your bond is up for renewal, your surety provider will begin notifying you about 90 days before the new term is set to begin. To verify if your bond is eligible for renewal, you can check the term information on your original bond form or contact the obligee.

Or — for active SuretyBonds.com customers — our proprietary bond search tool can provide your specific renewal information.  

VERIFY MY BOND STATUS

Questions regarding bond filing acceptance should be directed to the obligee.

What if I don’t renew my surety bond on time?

If you do not renew a bond during its renewal period, your market will likely issue a notice of cancellation and your bond will be canceled before the new term is set to begin.

What happens when a bond expires?

If your bond expires and you have no further need for it, you don’t have to do anything (except for release-required bonds). However, if being bonded is part of your license requirements, continuing to operate without one could lead to repercussions, including: 

  • Lapse in coverage 
  • License suspension or loss
  • Fines and legal charges 

If you didn't renew a bond with us in time and need to maintain an active bond, call 1 (800) 308-4358 or email [email protected]

What if I receive a notice of cancellation?

When a surety company cancels a surety bond, a notice of cancellation is sent by mail to the obligee. A surety company may cancel for several reasons, including: 

  • A claim is filed against the bond
  • The principal does not renew the bond
  • The bond is moved to a new surety company 

If your bond is canceled due to non-renewal, most markets will reinstate a bond if the renewal premium is paid within 30 days. If your bond was moved to a different market because of availability or a better rate, the old bond must be canceled before the ‘new’ bond can be obtained. 

How much will my surety bond renewal cost?

Surety bond renewal prices are often similar to the original cost. However, your premium cost may change year over year. Here are some of the most common factors impacting renewal costs: 

  • Risk: The likelihood of new claims against the principal as well as the market at large. 
  • Bond amount and term: If the term length or bond amount changes, the premium will adjust accordingly. 
  • Credit score: Credit score is one of the most important factors influencing bond price. 

How can I get a better rate when renewing my bond?

SuretyBonds.com represents the country's top surety markets. We start shopping for the lowest premium rate 3-4 months before your renewal. If your credit score and financial situation have changed, you may qualify for a cheaper rate. 

You can also save time and money with by selecting a multi-year term discount on select bonds! 

What does it mean if my bond requires a release?

If your surety bond requires a release, it can only be canceled if the obligee closes the bond after you fulfill your obligation. You must renew your bond and pay the premium until the obligee provides official release documentation. 

How do I update my renewal bond with new information? 

If your SuretyBonds.com bond is in its renewal period, you can update your account information online 24/7 when reviewing your renewal invoice. Any online change request will prompt us to review and send a new invoice for verification. 

If you need to update the information on a current bond form that's on file with the obligee, we’ll issue the appropriate documentation and provide instructions. 

How will I receive my bond renewal documents?

Once you pay your renewal invoice, we'll typically process your file within one business day. You'll then receive a confirmation email with instructions for finalizing your renewal with the obligee.

Physical Delivery

If the obligee requires raised seals and wet signatures, we’ll ship the bond renewal documents via FedEx and provide a tracking number. You can then submit the documentation to the obligee.

Digital Delivery

If your obligee accepts a digital seal and facsimile signature for the surety company, we’ll email your renewal documents. You must then print, sign, and physically deliver the documentation to the obligee.

Renew Your Surety Bond Today

Whether you need to renew your surety bond or apply for a new one, SuretyBonds.com is here to help. As the surety industry leader, we offer the quickest and easiest path to get bonded. 

Have more surety bond renewal questions? Contact our friendly surety experts today. Call 1 (800) 308-4358 or email [email protected]

Call 1 (800) 308-4358 to talk with a Surety Expert