Surety Bonds

Solutions Specialty Insurance Brokers

Our agency’s specialty for many years has been mainly surety bonds. Our flexible and innovative approach and access to the top “A” rated and Treasury listed surety companies, have allowed us to meet the demands of many of the most complex surety requirements.

We offer surety programs from small license and permit bonds to the large contract bonds with aggregate limits up to $10 million dollars.

Our agency has in-house authority to execute many bonds in our office instantly, we are the decision-makers, and many bonds are processed regardless of credit.

We have developed the expertise to process difficult surety bond requests in a timely manner and with the minimal amount of information.

What is a surety bond?

In general terms, a surety bond is a three-party agreement between the Surety (the carrier), the Principal (the applicant or contractor) and the obligee (the party requesting the bond).

There are several types of surety bonds and the Obligee may be different. For instance, in a License and Permit bond, the Obligee may be a government agency who needs the applicant to be bonded before a license or permit is granted.

In a contract bond, the Obligee may be the construction project owner or general contractor. In a Sub-division bond, a city or county may be the Obligee and needs a surety bond before a construction permit is granted.

The bond is issued or executed in favor of the Obligee.

Is the bond the same as insurance?

No. In a surety bond, the principal must perform as promised otherwise a claim can be filed against the surety bond.

If a claim is filed, the surety will investigate the claim and contact all parties. If the claim is valid and the principal still fails to fulfill its bonded obligation the principal is responsible to reimburse the Surety all payments and expenses resulting from such claim and breach.

On the other hand, insurance is a two-party agreement and when the insurance company pays a claim, it does not expect to be reimbursed by the insured.

What is an Indemnity Agreement?

Before a bond is executed, we will need the principal(s) and spouse(s) to complete and sign the appropriate Indemnity Agreement.

The Indemnity Agreement is an agreement between the surety and the principal. This legal document is very important and establishes the obligations of the principal.

Also, the principal agrees to indemnify the surety for all costs and expenses in case of a claim. Some indemnity agreements must be notarized and/or witnessed.

Why was I denied a surety bond?

There are several reasons why your application for a surety bond has been denied in the past. Some of the most common reasons are:

  • The applicant’s credit does not meet the requirement for the type and size of the bond being requested.
  • The financial statements do not meet the underwriting criteria for the type and size of the bond being requested.
  • The applicant does not have the necessary experience for the type of bond needed.
  • The type of bond and/or size is outside the carrier’s appetite.

Most surety companies are very selective and would not approve a surety bond unless the applicant meets the underwriting criteria for the bond written.

We specialize in providing solutions to those hard to place accounts. Applicants who have been denied a surety bond in the past.

We work hard on trying to obtain an approval and rarely deny a surety bond. If your credit is less than stellar or your financial statements do not meet the surety underwriting guidelines, we have specialty programs for you.

Most surety companies are very selective and would not approve a surety bond unless the applicant meets the underwriting criteria for the bond written.

We specialize in providing solutions to those hard to place accounts. Applicants who have been denied a surety bond in the past.

We work hard on trying to obtain an approval and rarely deny a surety bond. If your credit is less than stellar or your financial statements do not meet the surety underwriting guidelines, we have specialty programs for you.

Some of the types of bonds we specialize include, but are not limited to the following:

Commercial Bonds

  • DMV Vehicle Dealer
  • DMV Registration Service
  • California Car Wash Bond
  • Parking Lot Bond
  • Waste Tire Hauler Bond
  • Defective Title bond
  • Freight Broker Surety Bond
  • Janitorial Surety Bond

Contract Bonds

  • Bid Bonds
  • Performance Bonds
  • Payment Bonds

Sub-Division Bonds

  • Improvement Performance Bond
  • Grading Permit Surety Bond

We have listed some common bonds, if you do not see your surety bond or not sure what bond you need, contact us to discuss your needs and situation.