The three main types of surety bonds across the U.S. are license and permit bonds, also known as commercial bonds, contract bonds that regulate the construction contractor’s business, and court bonds, that are required only by courts.
Individuals and businesses in San Diego can use surety bonds in many different cases. Here’s a brief list of the most popular types of bonds in the city:
Overview of San Diego surety bonds
San Diego surety bonds act as an agreement between three parties, your business as the principal, the obligee which is either the city, state or federal authority requiring the bond, and the surety company that will be backing you financially by providing the bond.
By posting a surety bond you agree to comply with the state laws and conduct your business legally. In case you break the agreement, you can face a bond claim and you may end up reimbursing any affected parties up to the penal sum of your bond.
If you want to learn more about how bonding works, feel free to reach us at (877) 514-5146. Lance Surety Bonds’ experts are ready to assist you.
Questions about Surety Bonds in California
How much does getting bonded cost?
The prices of getting bonded in the city of San Diego depends on the type of bond and the relevant authorities that set its amount. However, the premium you will be paying on a regular basis is a fraction or a certain percentage of the whole amount.
Depending on your financial background, a typical premium varies between 1% and 5%. The main factor in estimating your final bonding cost is your credit score. The score is what essentially defines you as a potentially risky principal. The riskier your business is, the higher the premium you have to pay.
Can I get bonded with bad credit?
Lance Surety Bonds offers options for businesses with bad credit score or far from perfect financial backgrounds. Our Bad Credit Surety Bonds program is designed for those applicants who have low credit scores, bankruptcies, tax liens, and other financial issues.
Despite your bad credit, however, you can still get the best bonding cost for your case. We work with a list of A-rated, T-listed surety companies, that will guarantee you the top rates in the range of 5% to 15%.
How do I apply for a San Diego surety bond?
Once you know which San Diego surety bond you need, you can begin the bonding process by completing our online application to get your free bond quote.
You can also check out our How to Get Bonded page for further information on the bonding process or simply call our experts at (877) 514-5146.