How do I know what type of bond I need?
Because there are tens of thousands of surety bond variables, it can be very confusing figuring out exactly what the risk and obligation might be. Having a surety professional is extremely important to best protect yourself and your company. Not having your surety relationships stable and appropriate can be devastating to a business that is caught off guard when terms change dramatically because of an agent that does not have the expertise to manage all scenarios your surety needs might create.
However, finding out what type of bond you need is an easier process than you might think. There are basically 5 different classifications of surety bonds and as long as you can figure out which class you fit in, the rest is fairly typical. The 5 basic classifications are:
Letís ask ourselves 3 simple questions so we can figure out what class you fit in.
1. Who is requiring the bond?
2. What kind of business am I?
3. Is there a contract involved?
Just by answering these questions you can easily figure out where you fit and what the process will be. However, there are times when the risk is not so cut and dry and SPS is here to walk you through the process from the very beginning and get you moving in the right direction rather than wasting valuable time.