In my previous blog Surety Bond Basics - Part 1, we looked at two frequently asked questions relating to bonds. Here are several others that are also very common: Why do surety bonds need to be underwritten? A surety company must determine the risk of a loss occurring if the principal is unable to satisfy the obligation under the bond. Since a surety bond is an extension of credit, the surety company must review the principal’s financial information and business experience to determine if … [Read more...]
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