5K-10K Minimum

[grasshopper]

If I need a license or a permit bond that is only being required for 5K, can I apply for a larger amount so that I meet my 5K requirements? I know that your company has a 10K minimum to write the bonds but I have some credit issues and have been turned away from other bonding companies.

[Bond Magician]

Originally Posted by grasshopper

If I need a license or a permit bond that is only being required for 5K, can I apply for a larger amount so that I meet my 5K requirements? I know that your company has a 10K minimum to write the bonds but I have some credit issues and have been turned away from other bonding companies.

You really have to obtain the bond for the amount that the obligee is requiring. So, if the obligee is requiring a $5,000 bond, you should contact a local insurance agency within your state and they may have a market for this type of bond. We can also refer you to an agency that we work with who can help you with that bond amount.

[grasshopper]

Why wouldn't the State accept a bond that actually covers more? This seems like they are in the position to get the requirements meet and then some.

[Bond Magician]

Originally Posted by grasshopper

Why wouldn't the State accept a bond that actually covers more? This seems like they are in the position to get the requirements meet and then some.

Well, it's not necessarilly that the bond will be "covering more", it's strictly based on what the amount is that the state is requiring. The bond may get rejected if a company were to issue the bond for a bond amount that is not required by the state. Also, on most bond forms, the actual bond amount is listed on them. So, if the bond requirement is $5,000, in most cases that specific amount will be listed on the bond form, and if a company were to issue the bond for $10,000, there is a good chance that the bond will be rejected.

[Surety Wizard]

Not to mention the fact that you would essentially be paying double the amount of premium for no reason. Why pay for a $10,000 Bond when you only are required to obtain a $5,000 Bond. Its not smart business practice.

[Surety Queen]

Originally Posted by Surety Wizard

Not to mention the fact that you would essentially be paying double the amount of premium for no reason. Why pay for a $10,000 Bond when you only are required to obtain a $5,000 Bond. Its not smart business practice.

Make sure you contact our agency to see if we will write a $5,000 bond - in most instances, we will! Have a dialogue with the bond representative to see if the type of bond you are needing can be written.