Surety Bonds can get confusing, but honestly don’t let it get in the way of using your noodle and seeing that it’s not as intimidating as it seems! These 3 mistakes are what I have found to be the most common:
Mistake #1 Getting the Wrong Bond Amount
It is always the buyer’s responsibility to double and triple check the exact bond amount before taking out a surety bond! The reason you want to get this right the first time is because the bond will be rejected when it is submitted with the wrong amount, and you will have to do the process and pay the premium a second time! Not fun!
Mistake #2 Getting a Surety Bond Through Unsavory Sureties
It happens, there are those rare few stories out there about how obligees have been victimized by an unsavory (Usually unregistered) surety. But to make sure that you are always getting what you agreed to, always do business through reputable agents, make sure that they are registered with the state by talking with your state insurance commissioner or by verifying membership through one of the various national surety bond associations just to make sure!
Mistake #3 Not Buying the Surety Bond Before the Given Deadline
Just as the title says, always be punctual and get it done on time! Otherwise you will have to do the process again and possibly face judgment! Just like those nightmarish days in college, deadlines do matter!
In sum, always do your homework and don’t be afraid to ask questions! As I mentioned before, mistakes do happen— but be proactive and you can avoid them!