Notary Bonds/Commercial Surety Bonds/Alabama Bonds/Bonding/Neill Bonding & Insurance

A Notary Bond is regulated by State statues and prescribe the duties of a Notary Public.  Professional liability is imposed on the Notary Public and in most States there is a mandatory bond requirement to protect the public.

Commercial Surety Bonds/License & Permit Bonds/Notary Bonds/Alabama Bonds/Bonding/Neill Bonding & Insurance

A commercial surety bond is sometimes referred to as a “non-contract bond” because it does not guarantee a specific contract like a construction bond would.  These bonds are an agreement between a principal and an obligee that a certain obligation will be performed.   The agreement usually states the principal (also known as the licensee) will conform to the ordinances or law relating to the business they are engaged in.  Commercial Surety bonds are comprised of License & Permit, Notary, Financial Guarantee, Public Official and many others.

Surety Bond Premium/How much does a Surety Bond cost?/Alabama Surety/Bonding Alabama/Bonds/Neill Bonding & Insurance

Surety bond premiums vary from one surety to another, but can range from 0.5% to 2.5% of the contract amount, depending on the size, type, and duration of the project and the financial stability of the contractor. In many cases, the cost of a payment bond and a 12-month maintenance bond is included with the purchase of a performance bond.

 Typically, there is no charge for a bid bond if performance and payment bonds are required on the project.

Neill Bonding/Alabama Surety Bond (AL)/Surety Bonds/Risk Classifications

How do you know if you are being charged the correct bond premium? Bond premiums are determined in large part on length of time in business, quality of organization, and financial strength. However Construction Bonds are also classified in different Risk Classifications; for instance a highway project has a lower risk element than say a high-rise building. The Suret Industry has three(3) main risk classifications. They are Class B, Class A, and Class A-1.

Class B Construction Projects are typical vertical construction, most all trades associated with it, utility work, digging work, excavations, sewage disposal plants, etc.

Class A Construction Projects include  clearing, grading and grubbing where no ultimate improvement is involved, curbing and guttering, athletic fields, etc.

Class A-1 Construction Projects include highways, roads, street paving and airport runways and paving contracts that do not include widening, bridges or base construction, as well as fire alarm systems, etc.

This is only a very brief overview of the different risk classifications that Surety companies use to classify risk. You may be paying more than necessary if your Bonding Agent is not  familiar with these different Risk Classifications. It can add up to a lot of dollars if classified incorrectly.


Bonding companies require timely financial information and frequent meetings. Contractors should work to foster a strong bond with a surety. The surety and the agent want clients to be successful–not only to prevent losses, but also to promote a healthy and profitable client.

For sureties, success relates to the        Three Cs:

1. Character: The surety wants a sense that the company has the highest integrity and that the owner is honorable.

2. Capacity: Capacity is the expertise, manpower and experience to handle the project. Generally a surety will consider a project no larger than twice the size of the largest project completed by the contractor.

3. Capital: Capital is the financial strength to handle the total backlog of the company, whether the work is bonded or not.*

*Information provided by the Surety Information Office


A surety bond is a three-party agreement where the surety company assures the obligee (owner) that the principal (contractor) will perform a contract. Surety bonds used in construction are called contract surety bonds. There are three primary types of contract surety bonds. The bid bond assures that the bid has been submitted in good faith, that the contractor intends to enter the contract at the price bid and provide the required performance and payment bonds. The performance bond protects the owner from financial loss in the event that the contractor fails to perform the contract in accordance with its terms and conditions. The payment bond assures that the contractor will pay certain workers, subcontractors, and materials suppliers.*

*Information provided by the Surety Information Office

If I don’t have a professional CPA financial statement can I still get a Bid, Payment and Performance Bond?

If you don’t have a professional CPA financial statement can you still get a Bid, Payment and Performance Bond? The answer is YES! It is a quick and easy application process, we can help walk you through the process. We have several surety markets that can secure a Bid, Payment, and Performance Bond without Professional CPA financials. You may be limited to the size of project, usually up to $500,000. You will need to fill out an easy 3 page application  and include a personal financial statement along with the latest In-House financial statement from your company. We can provide a personal financial statement form if you need one. The time frame to get the bond back to you is usually 36 hours or less.

If you have any questions or Bond needs please do not hesitate to contact us.  

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