If you are paying for surety bond for some years, you'll have the ability to lock into a fixed rate for the length of the contract.
With many bonding insurance companies you could extend the policy by 2 or 3 years.
Always Get in touch with a broker for additional information, because terms will be different for every Bonding insurance Company.
With markets shifting yearly the surety company might ask for updated financials on renewal.
Up to date information the surety might request on renewal is: · Up to date business financials: Because the surety evaluates your financial situation, the financial statement and your most up to date quarterly statement would be required.
· Credit history: usually credit reports not older than 30 days would be required · Your most recent personal financial statement not dated older than 30 days from the application.
This info is required by the bonding company to make sure that the risk meets their conditions.
Remember a Surety Bond is an unsecured loan made to protect the customer against fraud or other risks.
When you extend your surety bond you will only have to present this info every 2 to 3 years instead of each year.
A lot of surety companies may apply reductions each year your bond would be extended too.
Discounted premiums differ for every company.
Usually there is a 10-15% reduction of premium applied for the 2nd year then 20% for the 3rd year your bond is in force for.
Additional discounts could be applied based on the nature of your business.