Knowing what kind of surety bond to get can be confusing. With thousands of different kinds of surety bonds in the market, you do not want to waste time finding the right one.
If you need help getting the right surety bond, you can visit us here, and we will help you with everything you need to know.
This may be your first time getting a surety bond. Or maybe it is not. Either way, there is an important question regarding surety bonds that people have been asking lately. Is a surety bond refundable?
The Question: Is A Surety Bond Refundable?
Generally speaking, the answer is no. A surety bond is not refundable.
However, there are certain exceptions in which surety bonds can be refunded, either partially or in full. For these cases, you will have to speak to your surety bond provider to be sure.
With that said, here are the possible scenarios in which a surety bond can be refunded.
1. You purchase a bond, but it never gets submitted to the Obligee.
This can happen. After purchasing a bond, say, for your business, if you then change your mind and decide not to submit it, then a refund may be possible.
2. You purchase the wrong type of bond.
In this case, you may be able to get a refund or ask your surety bond provider to change your bond to the correct one.
3. You pay for a 3-year term surety bond, but the project is completed before the term expires.
If this happens, then some surety bond providers will give a prorated refund of the surety premium. But, this really depends on the terms of the bond.
4. You purchase a surety bond and later find out that the court has changed their decision.
Again, these are just some possible situations in which surety bonds can be partially or fully refunded. The situations mentioned above do not guarantee that you will be given a refund.
We recommend contacting your surety bond provider for further details.
If you purchased a surety bond from us and would like to know if it can be refunded, you can contact us at (702) 850-7711.
How Much Can You Refund From Your Surety Bond Premium?
Surety bonds can be cancelled depending on the terms you agreed to when you signed for the bond. But, typically speaking, surety bonds have a 30-day cancellation period.
Cancelling your surety bond does not guarantee that you will be refunded the whole amount. The amount that is refunded depends on your agreement.
Some surety companies do provide full, partial, or prorated refunds. Other companies set a minimum amount that can be refunded.
Can A Surety Company Deny My Refund?
Yes. A surety company may deny your refund depending on the agreement you signed.
One common example is if you signed a surety bond agreement with no cancellation clause.
Another possible scenario is when the surety bond contract states that the bonding company has the right to claim the whole premium amount upon issuance of the bond.
This is why it is important to know all the details and read the fine print before signing a surety agreement.