The effective date is the moment at which the surety bond comes into force or takes effect. The designated effective date for each surety bond is dependent on the particular surety bond and applicants should verify with the obligee for particular criteria. Most often the bond is required to take effect prior to licensing going into effect.

Simpli Surety has the largest instant surety bond form library on the internet. Use our search tool to locate your by state or keyword. If unable to locate it, simply reach out to us via email or chat and we’ll source your required bond form and have it added to our library. Within hours we’ll have ti available on our portal for you to apply online.

It depends on the type of surety bond being requested and is a mandate typically set by the Obligee, or party arter requiring the bond.

Generally, for a construction performance bond or payment bond, the amount will be the total contract value. For a bid bond, it’s typically a percentage of the contact amount, up to 20% depending on the Obligee.

For most other bonds, the aforementioned amount set by the Obligee is typically listed on the bond request form. When applying through Simpli Surety, we have required bond amounts listed on our applications. If not listed, that particular bond will be tied to a contract value. If unsure, drop us a note and we’ll be glad to help.

Surety bonds are generally issued for a specific duration (usually 1, 2, or 3 years) or as “continuous” bonds. A continuous bond implies that the bond is valid until terminated by the surety company. Generally, most bonds are valid for one year and come up for renewal.

Bonds should be renewed  before expiration unless released of it by the obligee. Obligees require you to be bonded for the entire duration of the obligation or for as long as you are licensed.  To avoid cancellation, make sure you pay your renewal premium by the specified due date.

Simpli Surety will contact you in advance of the renewal date with a direct link to the renewal application should you require it.  In addition to informing our customers about their upcoming bond renewals, we also lower the cost whenever possible. Don’t worry – we’ll remind you!

SimpliSurey approves your bond in no time. There is not drawn out quote process as can be the case with other online providers, making the bonding process span days or longer.

After applying online, we’ll render a decision in minutes and once documents are e-signed and fees paid, the bond will be sent to your inbox and to the Obligee. The entire process can be completed in the time it takes to finish a cup of coffee!

For more complicated projects, we may require additional underwriting and request additional info. Still, we move swiftly once that information is in hand having your bond out to you the same day.

The conditions for terminating or canceling a bond are generally determined by the type of bond. The cancellation clause for a license, permit, and miscellaneous bond is usually found in the bond language.

Contract bonds required of a governmental agency may not be cancelled until work is inspected and a release of the bond is issued. The obligee must provide the final sign off and issue the release to be provided to the surety.

Court bonds can only be cancelled by the court, not by the principal or surety. This also must be done by the Obligee, the court, by issuing a release of the bond.

Business service bonds can be cancelled by the principal upon request, but still required to accompany an active license.

Some obligees allow you to post a letter of credit in lieu of a surety bond. There are several advantages of using a bond over a letter of credit including often more favorable rates. ANother advantage is that bonds do not count against your credit facility, meaning they do not impact your debt utilization or ability to secure debt.

Surety bonds are more appealing than other varieties of posting cash or obtaining a letter of credit because they provide greater protection. Letters of credit are on demand, meaning the bank will require you to pay it back at any point. Whereas with a bond, the surety will step in to help the principal remedy the situation, if necessary compensate the Obligee and seek reimbursement from the principal thereafter.

Whether with us or another firm, we encourage our customers to work with a professional surety bond agency. Look for brokers that are members of the NASBP or have an AFSB designation. SUrety bonds can be nuanced, so you’ll want a broker that specializes in surety and has a dedicated team or access to surety experts.

We only work with federally approved bond companies that have A-Rated AM Best Ratings or better, and are accepted by the U.S. Department of Treasury to write federal bonds. These designations ensure the surety or bonding company’s capability to write credible bonds.

Dedicated to the industry beyond 40 years, we’ve developed decades long relationships with every reputable surety market domestic and international offering us the most competitive rates and professional service.