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Educational Consumer Tips

Surety Bonding

Author: Better Business Bureau
Published:

WHAT IS A SURETY COMPANY? 


Most large property and casualty insurance companies have surety departments. In addition, there are some companies for which surety bonds make up all or most of their business. Corporate surety bonds are the preferred method of guaranteeing the performance of financial obligations of others. These guarantees include contractor performance and payment bonds, financial guarantee bonds, license and permit bonds and many others. 

Industry leaders and associations offer the following tips: 

*Before purchasing, find out the name and address of the surety company who is offering the bond. Is the surety company licensed to sell in NYS? Contact the NYS Dept. of Insurance at 800-342-3736, to check for licensing. 

*The US Government requires all surety companies to be qualified. Contact the United States Treasury Department at 202-874-6850, or go online at http://www.fms.treas.gov/c570/c570.html to check the companies' qualifications. 

*A.M. Best is a private publishing company that analyzes and rates insurance companies, which includes a detailed profile of almost all insurance companies operating in the United States, as well as financial information about each company. Go to http://www.ambest.com for a company's rating. 

*Carefully read and understand any documents before signing. 

*Never provide credit information or a credit card to someone you're not familiar with. According to industry leaders, most companies will invoice you. 

*Contact the BBB for Business Reviews on the agent and surety company. 

For more information, contact:

Better Business Bureau 
(800) 828-5000
www.upstateny.bbb.org


This report is general in nature and is not intended as a Business Review on any company, service or product.