Bond Form

[Bond Magician]

What makes a bond form acceptable to a Surety Company? Why would a Surety not accept a bond form?

[Surety Queen]

Originally Posted by Bond Magician

What makes a bond form acceptable to a Surety Company? Why would a Surety not accept a bond form?

There are two specific items that Surety wants to see in all bond forms. First they want to know that there is a cancellation clause in the language so if they need to get off the risk, they can cancel by providing the required notice to the Obligee.

The other items is aggregate language. If there is no aggregate language in a bond form, there is really no limit to the Surety's obligation in the event claims start pouring in.

These two items being included in bond forms would most likely make them acceptable to Surety.

Good question...