Factors

[Bond Magician]

What are the main factors you take into consideration when determining what the premium is for a performance & payment bond? What do you take into consideration?

[Surety Queen]

Originally Posted by Bond Magician

What are the main factors you take into consideration when determining what the premium is for a performance & payment bond? What do you take into consideration?

It depends on what size bond line you have. The Fast Track types generally have a higher premium because there are no financials required for approval. As the contracts get larger, the type of work can determine what the premium is. Under full bond lines, the larger the contract could mean the lower premum rate.