Are Bonds similar ti Insurance?

[Bond Magician]

Are surety bonds similiar to insurance in the way that my premium will be reduced after the first year if there are no claims placed on my bond?

[Max Slivens]

This depends on several factors, actually. First and foremost, if the Surety Company has only filed one set of rates in the State where the Bond is needed, more than likely your premium will remain the same throughout the life of the Bond. If the Surety Company has filed rates that vary dependent on the applicants' strengths and weaknesses, then it would be possible for the rates to be reduced. At each renewal, you can request your file to be reviewed. If there have been no losses, and your credit and/or your financials have materially improved, it IS possible to have your premiums lowered.