Surety Bond Service Provider

WMW Insurance will be the surety on a bond that you require in Georgia or South Carolina.

 

What is a Surety Bond?

A surety bond is a contract between three parties: you (the principal), WMW Insurance (the surety) and the bond requirement company (the obligee). The bond states the surety financially guarantees to an obligee that the principal will act according to the established bond terms.

 

How Do Surety Bonds Work?

Surety bonds bring three parties together in a mutual, legally-binding contract that ensures the parameters of the bond are fulfilled. With this type of bond, the surety provides a line of credit in case the principal fails to fulfill the bond task. The obligee can make a claim to recover losses if the principal fails to fulfill the task. If the claim is valid, the insurance company will pay reparation that cannot exceed the bond amount. The underwriters will then expect the principal to reimburse them for any claims paid.

 

How much do surety bonds cost?

Rates depend on multiple factors, including obligees’ risk preferences, applicants’ credit ratings and the type of bond required. For license and permit bonds, applicants with strong personal credit usually pay annual premium between 1% and 3% of the total bond amount. Applicants with higher personal risk or applying in higher-risk markets typically pay between 5% and 15%.

 

How do I get a bond?

First apply for one. After the application is approved, your agent will let you know how much your bond premium costs and give you an agreement. Once you pay your premium and sign the agreement, you will receive your bond.

 

How long does it take to get bonded?

The length of time from application to issuance varies depending on the type of bond, promptness of premium payment and other factors.