Bond Form

[Carboholic]

I am trying to get a license bond for the driver training school I am starting. I have good credit, strong personal financials, and years of experience in the field, but was turned down. I was told the reason it couldn't be written was because the bond form was missing certain language... what is it that you're looking for and why is it so important?

[Admin]

Most bonding companies are going to look for two particular clauses.

1) Cancellation Clause - Allowing the surety to cancel the bond at anytime for any reason within a certain number of days.

2) Aggregate Clause - Language stating that the bond claims can not exceed the bond amount.


Bonding companies will also be wary of other terms (such as bond tails), but those are the two clauses that they look for.


Have you tried to apply with our agency? We have programs that allow for risky bond language.