In order to bid on a contract, contractors are required to submit a bid bond in which they promise the project owner that they will be able to start and finish their obligations at that particular cost.
What Are Surety Bonds?
A surety bond protects the contracting members by guaranteeing that when an agreement is made between parties, it will be fulfilled, and all obligations will be met as stated. This will ensure both parties have certainty about their contractual relationship and be compensated if the agreements are not met.
A surety bond can also protect contractors, for example, from being held responsible for circumstances beyond their control, such as natural disasters or a lack of materials due to unforeseen shortages.
Learn About Our Bonding Process in Pennsylvania
The process for obtaining a surety bond in Pennsylvania can be complicated and overwhelming for businesses and bond buyers. At World Insurance, we specialize in surety bonds and help you understand them and make the process as easy as possible.
We'll discuss with you all of the bonding requirements in Pennsylvania, including other details such as surety bond total, surety bond premium, and more so that you can make the best decisions for your business.
Fill out our form
The first step in getting a surety bond in PA is to fill out our basic application form. This will allow us to get an understanding of your business and what your needs are. This form will take a few minutes to complete and gets you much closer to confidently signing agreements with others for your business!
Receive a Consultation with an Agent
Once you've filled out our form, one of our surety bonds specialists will be in contact with you within 24 hours. During this discussion, we may need to ask for employer identification numbers as well as social security and occupational license numbers so that we can review your personal and business credit history. From there, we will determine your eligibility and surety bond premium/pricing information, as well as taking care of any other insurance you need for your PA business.
During the consultation, you'll also be able to ask any questions that you and your business may have. Call or email an agent today to confidently ensure that your organization maintains its reputation and is adequately insured!
Sign Your Contract and Pay Your Premium
Once you've decided which surety bond is best for you and your organization, we will work through the paperwork together and ensure everything is in order. From there, you'll sign the bond contract and send the agreed-upon premium.
Receive Your Pennsylvania Surety Bond
Finally, you should receive your surety bond within the next day, and you'll be ready to submit it to the obligee or the government authority that has required you to obtain surety bonding. If anything goes wrong with your surety bond and a claim is made, World Insurance will stand by you and do everything we can to protect your business/personal assets. Don't hesitate to contact one of our surety bonds specialists today!
What are Construction Security Bonds?
Contractor bonds are a type of surety bond that protects against financial loss due to the contractor's failures, such as disruptions or failure to meet contract specifications. They are frequently required by law for any contractors or businesses working on public projects in Pennsylvania. By submitting a construction bond, the principal company recognizes that they will complete the job according to the contractual commitments. This also assures the third-party client that the contractor will perform according to the terms stated in the agreement.
We will work with you to evaluate the financial merits of your company and charge a premium for assessing the likelihood that an adverse event would occur.
Types of Construction Security Bonds
A performance bond guarantees that the work will be completed as promised and compliant with all regulations and terms stated in your agreement.
A payment bond guarantees that the winning contractor has the financial means to compensate their workers, contractors, and suppliers on time.
Our maintenance bonds guarantee materials and quality craftsmanship in case of issues for up to two years after completion!
Completion bonds guarantee that a project will be completed on time, within budget, and free of liens. It can also cover any specific performance obligations.
License and Permit Bond
License and permit bonds guarantee that businesses comply with federal, state, provincial, and municipal laws. They also offer protection against fraudulent activities to both the government agencies issuing these bonds and consumers. Many industries in New York require a license and permit surety bond before starting any official business.
Liquor bonds are contracts that guarantee liquor license holders will comply with all applicable statutes, laws, and regulations- as well as paying sales tax on any alcohol sold.
Financial Guarantee Bond
Financial guarantee bonds can be included in a more significant surety bond and provide a guaranteed security measure for investors. If the issuer of a bond cannot repay its previous obligation to its bondholders, then the investor can make a claim on their financial guarantee bond to get compensated.
Motor Vehicle Dealer Bond
Motor vehicle dealers are also required to get a bond for their business. They protect the dealership and its customers by ensuring they will operate legally and ethically under local law. No matter what you are looking to get surety bonds for, World Insurance is here to help!
Frequently Asked Questions About PA Surety Bonds
How Do I Get a Surety Bond Quickly in Pennsylvania?
Our Contractor Express Program is the best possible option if you need a surety bond fast in Pennsylvania. At World Insurance, we offer qualified buyers up to $500,000 in bonding within 24-48 hours with only minimal personal and company information needed.
What Is the Statute of Limitations in PA for Actions Under Surety Bonds?
If the surety bond does not say otherwise, then the statute of limitation to sue under a private contract is for one year from the cause of action date. In regards to public contracts, there is a limit of one year and ninety days from the date that the claimant last performed labor or furnished materials.
How Much Are Surety Bonds in Pennsylvania?
Surety bonds in PA generally cost between 1% and 15% of the total bond amount. This percentage varies depending on your business's needs, credit, and other financial histories.
How Do I Know If My Pennsylvania Business Needs a Surety Bond?
World Insurance can get you approved for most license or permit bonds despite your credit situation. However, it may be harder to get approved for contract bonds if your credit isn't perfect.
Either way, our goal is to find the surety bonds best suited for your company and figure out what size projects we can assist you with.
Can I Still Get a Surety Bond in Pennsylvania If I Have Poor Credit?
To find out if your Pennsylvania business needs surety bonds, you can call World Insurance to discuss our solutions and get more information.
We also suggest reading definitions and descriptions of surety bonds found through the Pennsylvania Department of State's website and other research to find your industry's requirements.
Get Started With Your Surety Bonds
Contact World Insurance today to make sure all required coverages are in place. We'll help you compare surety bonds quotes from different insurance providers.
HAVEN’T FOUND WHAT YOU’RE LOOKING FOR?
How much home insurance is enoughLearn More: How much home insurance is enough
130+ Locations to Serve YouView all locations: 130+ Locations to Serve You
Does your homeowners insurance cover your home for moldLearn More: Does your homeowners insurance cover your home for mold
Are you an agency owner
We are looking for partners that are ready for the next level