Surety Bonds 101 - Surety Bond Underwriting

  • Surety and the 4 “C’s”
    • Character -  Does the Principals record show him to be of good character and likely to perform the obligation he or she assumes
    • Capacity -  Does the applicant have the skill and ability to perform the obligation?
    • Capital - Does the financial condition of the applicant justify approval of the particular risk?
    • Credit – Does the principals business and personal credit report reflect that they historically meet their outstanding obligations within the prescribed terms.
  • Secondary to the 4 “C’s”, we evaluate the risk and the underlying contract, agreement, statute and bond form.