Surety bonds are easier to get involved with than you might think. Learn more about how to get started, right here.
Getting into the world of surety bonds as a first-time buyer isn’t as difficult as it may seem. There are firms out there who are ready and willing to help you understand the process, but this article should point you in the right direction.
Let’s talk about surety bonds, choosing the right kind, and making ROI for your troubles.
The 4 Most Common Mistakes of Purchasing Surety Bonds
Below, we have listed the four ways you are likely to misstep when buying a surety bond for the first time. You can learn how to get a surety bond at Talisman Casualty if you still need further help.
1 – Buying the Right One
What could be more important than choosing the right surety bond for you? There are hundreds of options in bond out there, varying from commercial to construction, contractors of professionals. They even differ depending on which part of the country you are from.
Making sure that you have selected the correct one before laying down your cash is good business sense. The best way to do this is to find a specialist firm with an amazing reputation, capable of negotiating on your behalf. Always do your research when buying, to make sure that you aren’t getting ripped off.
2 – Paying too much
Although some of the surety bonds provided by specialist firms come in at a fixed cost, others don’t. Of the latter, you will have to work out the initial price by yourself. The best way to do this, of course, is by calling in an agent to operate on your behalf.
Usually, the surety payment needs to be a specific amount which has been worked out by a specific formula. If you’re not a mathematician, then things could get difficult. Worse, if you make a mistake, it will take months of undoing. It is best to triple check those figures before you buy.
3 – Missing the Deadline
Some surety bonds are posted before your licenses are required, and some are posted after. In the case of those posted afterwards, there will be a set time limit on how long you can file for, before it is over the deadline. Be sure to check your deadlines and avoid this common mistake. You can also avoid it by dealing with the need for surety as soon as it arises.
4 – Use State Insurance Commissioner Approved Agents
If you do want to get into surety bonds and you are a first-time buyer, keep in mind that there are many firms out there who will take delight in fleecing you. Surety bonds are something kept deliberately complex in the financial sector to put you off buying into it with no experience. A rogue agent will take advantage of this and abscond with your money, often legally.
Contact the State Commissioner for a list of approved surety bond providers in your area and you won’t go far wrong.