Usually yes, at a higher rate. Credit is the main underwriting factor on a license bond, so the same $25,000 bond can be priced very differently for two contractors. Programs exist for applicants with bankruptcies, tax liens, or thin credit files, sometimes with collateral or a personal indemnitor. The premium is a percentage of the bond amount, not the bond amount itself. Rates generally improve as the credit file recovers, so a bond written at a high rate is worth re-marketing rather than renewing on autopilot.
Related FAQs
No. Fidelity is crime coverage for employee theft, which we handle separately.
A bid bond backs your bid, a performance bond backs your completion of the work, and a payment bond backs payment to subs and suppliers.
No. It guarantees your obligation to the obligee. If the surety pays a claim, you are expected to repay it.
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