Surety bonds are required instruments for working in certain fields, and many contractors have been forced to find other places to work or other types of work simply because some element of bad credit in the past cropped up and stopped them from being able to acquire or renew their surety bond.
Many people consider surety bonds and insurance to be interchangeable, but while they function in similar ways from the client’s perspective, surety bonds are fundamentally different. There are no premiums, technically speaking, and the payout is handled solely in the case of bad work, uncompleted work, or damage done because of the work performed. Surety bonds are instruments of “making sure” the client. You could say that surety bonds “make sure” the client gets what they paid for. Surety bonds, again, are required, but are kept from many because of bad credit in the past. Well, no more!
There are companies who have seen this problem and have done something about it. By setting up financiers who are willing to work with contractors with bad credit (surety bonds really work more as a line of credit that is extended to the contractor), and streamlining the approval process, their new online application and renewal system is remaking the industry. Now, even contractors with bad credit can get the surety bonds they need to be able to work and provide for their family. Surety bonds will never be the same.