Surety

How does surety bond underwriting work in Georgia?

Georgia surety bonds are distinct from insurance in a critical way: if the bond is paid out, the surety has the right to seek full reimbursement from you. This makes bonds more like credit than insurance. Bond underwriting reviews your financial statements, credit history, and capacity to complete the obligated work. A contractor with strong financials qualifies for lower bond rates (1 to 2 percent of bond amount). Contractors with poor credit may pay 3 to 5 percent or may need to post collateral. The difference between an insurance policy and a bond is who ultimately bears the loss.

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How does surety bond underwriting work in Georgia?

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