FREE SURETY BOND QUOTE
Surety Bonds 101 - Surety ~Versus~ Insurance
- Insurance
- Based on the theory of pooled risks
- No indemnification – loss is paid out and no recovery from the principal is required
- Premium is based upon an estimation of losses based on historical trend analysis for specific policy exposure.
- Surety
- Case by Case basis, no pooling of risk
- Premium is based on the theory of “NO LOSS”
- If underwriting is 100% efficient, premium is to cover cost of underwriting and execution of a bond, not to pay losses.

