A Surety Bond Application is a form the surety bond company requires the principal to complete in order to start the underwriting process for a new surety bond.
The surety bond application form may vary between companies. It may include questions about the surety bond being requested, general information about the principal, business information and any other information the company determines is important in evaluating the bond’s risk of default.
In addition to this, many surety bond applications also include indemnity language so that they also serve as the surety bond’s indemnity agreement. For example, the applications for license and permit surety bonds will contain questions and require documentation to help the company evaluate the risk of the principal not adhering to a state’s laws and regulations governing a particular business activities.