We often receive a lot of questions from applicants when they fill out an application for a bond. Applications differ from surety to surety, and some applications correspond to specific types of bonds. However, all applications ask for the following basic information:
- Full Name
- Social Security Number
- Current Employment
- Type of Bond and Amount
- Reason for the bond
Besides requesting this basic information, all applications require a signature and an indemnification agreement. The applicant MUST agree to indemnify the surety for any loss the surety sustains as a result of the principal applicant’s bond. The surety depends upon a valid signature to the indemnity agreement to enforce its indemnity and contractual rights.
The indemnification agreement is the most important part of any bond application. Besides agreeing to pay for the surety’s losses on the bond, the applicant also agrees to pay all premiums due on time in the full amount.
Many applicants worry they may provide insufficient information to the surety by not filling everything on the application out. In most cases, not every question needs a response. Sureties design most bond applications to fit the needs of many different bonds so not every question may correspond to an applicant’s needs.
In addition to the bond application, sureties often like to see other relevant documents and information in relation to the bond. For judicial bonds, the surety needs to see court orders signed by a judge indicating the need for a bond and its amount. Likewise, court fiduciary appointments require several different documents. Future bond posts will discuss the additional documents needed for specific bonds.
By signing the bond application and indemnity agreement clause, an applicant also gives the surety the authority to run a credit check. Many fiduciary appointments depend on the credit worthiness of the applicant because the credit score best indicates the applicant’s ability to handle loans and personal finances.
As always, our agency will readily assist any of our clients throughout the bond application process. We can answer any questions and clear up confusions, and we aim to get our clients the bond they need as quickly and painlessly as possible. Contact us today to discuss your bonding situation and we will readily send you an application!