So, What is a Surety Bond, you wonder?
By definition, a Surety bond is a legally binding contract that insure 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 fulfill the requirement of ‘the obligee”, is the “the surety”.
Often misunderstood, Surety bonds and the 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.
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.
If you need more information about Surety Bonds, please contact David Gallagher Bail Bonds 24/7, we will be glad to assist you with any questions you have.