A Surety Bond Underwriter is the person who reviews the surety bond application and any other required paperwork in order to evaluate the risk of the surety bond for the surety company. Surety bond underwriters typically work for the surety company, although some sureties grant limited underwriting capabilities to their surety bond brokers or dealers. Approvals for new surety bond applications and for current surety bond renewals are based on the underwriting, so is the cost of a surety bond.
For example, with bad credit surety bonds the underwriter would evaluate the application, credit history of the surety bond principal, business financials, etc. and use this evaluation to determine if the risk was acceptable to the surety bond company. If the risk of default as determined by the underwriting was too high, the bond may not be approved. But even in the case of high risk, the underwriter may be willing to take on the risk for the surety company at a higher bond rate along with collateral being posted for a certain percentage of the bond value.