Late payment

[Numbers]

Do I have to pay a late fee if I do not pay my commercial bond premium before the due date?

[Surety Queen]

Do I have to pay a late fee if I do not pay my commercial bond premium before the due date?

The risk you take by not paying your premium by the due date is that your bond will be cancelled. If it is cancelled, there may very well be a reinstatement fee charged.

The reason that payment is due prior to the renewal date of your bond is because of the cancellation clause within the bond language. For example, if your bond has a 30 day cancellation clause, Surety will want the renewal premium 30 days in advance of the renewal date. This way, if the bond does need to be cancelled, the notice will be issued according to the terms of the bond.