FAQ

Frequently Asked Questions

Southeast Bonding Solutions Offers All Types Of Commercial Bonds Throughout The United States Utilizing Leading Software And Exemplary Service. We Set The Industry Standard For Excellence And Dependability.
  • Is Bond Amount and Penalty the same?

    Yes. Penalty is another term for the Bond Amount.

  • What is an indemnity agreement?

    An indemnity agreement is a legal document that discloses the Principal’s obligation to the Surety for compensation for any claims of damages, loss or expenses incurred, if the Principal is not able to fulfil the bond agreement.

  • How much does a bond cost?

    The bond premium is determined by several factors so rates can vary from bond to bond and state to state. However, rates are mainly determined by the risk of the bond or certain criteria of the Principal. In most cases the bond ranges between 1.2% – 3.0% of the bond amount requested by the Obligee. Example: if a bond is $15,000, the premium would be in the ballpark of around $195.00.

  • How is a bond purchased?

    Most bonds can be purchased 24 hours a day, 7 days a week instantly by applying online. However, some bonds might require underwriting review prior to purchase. Clients will receive notification if this should occur. We always have the option of completing the bond over the phone with the client. We must then obtain a signed indemnity agreement prior to releasing the bond documents. Since the system does not capture the applicant’s signature electronically.

  • How long is bond in place?

    Most bonds are typically written for one year and need to be renewed annually. However, some bonds are offered for 1, 2, and 3 year terms, like the contractor bonds above. The term option will be shown when applying for the bond, if it is an available option for the bond being purchased. Some bonds, such as Construction Bid Bonds are only valid for a set term, since they are only needed for a short period of time.

Have another question? Feel free to reach out to us!