Most people use a surety bond broker or dealer to help them through the process of obtaining a surety bond. The surety broker will work with the surety bond company on your behalf and often has access to several different surety bond markets in order to get the best price.
Starting the surety bonding process typically begins with the principal completing a surety bond application. A surety bond underwriter will then use the information on the application along with personal credit history to evaluate the risk of default.
The principal may also be asked to provide one or more years of company financial statements and/or personal balance sheets on the company’s owners in order to further assist the review of the business. Some smaller bonds may be underwritten and approved based upon solely the good personal credit of the business owner.
Once approved, the surety bond will be executed and the principal required to pay a premium. In most cases, the principal will need to sign the bond. After this, the original surety bond is typically sent to the obligee to keep with a copy going to the principal.