So, What is a Surety Bond, you wonder?
By definition, a Surety bond is a legally binding contract that insures accountability will be met between three parties:
In the case of dealing with bail bonds, the three parties would be of the following. Someone that is in need of the bond, is considered “the principal”. The organization that is requiring the bond, is “the obligee”. Last, but not least, the bail bonds company that guarantees to pay “the principal” and fulfills the requirement of ‘the obligee”, is the “the surety”.
Often misunderstood, Surety bonds and their purpose are diverse depending on which viewpoint one may be coming from. A lot of confusion is because they are part insurance and part credit. If you want to learn legal terms check out our bail bonds glossary.
How Much Does a Surety Bond Cost?
In most cases, the cost of surety bonds is a small percentage of the bond amount required. Generally, the percentage is up to 10% of the full bond amount, but this can vary by the bond type you need and your financial strength, and situation with the courts.