Surety Bonds for Commercial Bonds
What is a Commercial Bond?
A commercial bond is a universal type of Surety Bond. A commercial bond, such as a contractor license bond is most often required by government agencies, federal, state or local. These bonds are typically used to support laws such as license and permit principles. They are easy for most individuals to qualify for because they are low-risk to insurance companies for underwriting.
Commercial bonds are typically annual bonds and the initial term of the bond is one year. These bonds are required to be renewed every year. Commercial bonds are purchased by companies and working professionals who need surety bonds for purposes unrelated to legal issues, construction projects or other contracted work.
What is the cost of a Commercial Bond?
Some commercial bonds can be written without a credit check, which means your premium will be a flat, low rate. The cost of most commercial bonds, however, will depend on the following factors:
- the type of bond you need
- the risk associated with the bond
- the term of the bond
- your personal and professional financial history
Once we know this information, we’ll provide you with a free, no-obligation price quote for your bond. If your bond requires a credit check, you can expect the following:
- If your credit score is 700 or higher, you’ll qualify for the standard market, which means your premium will be calculated at 1-5% of the bond amount. This means a standard $10,000 bond would cost between $100 and $500.
- If your credit score is below 700, you’ll fall into our non-standard bond market, which means you’ll pay a higher rate that directly corresponds to your credit score.
What if I have bad credit?
You can still qualify for a Commercial bond. Keep in mind that personal credit is one of the main factors considered when writing these bonds as your financial credentials are seen as an indicator on the likelihood that a claim will be made against a bond. Therefore, higher risk applicants may still be accepted, however, may be assessed a premium amount.
Get a Commercial Bond today!
1) Fill out the form on our website – this takes 30 seconds of your time and we will get back to you with a quote in less than 24 hours (oftentimes within the hour).
2) Call us directly at 781-559-0568 – we are here to help!