Frequently Asked Questions

For many people Surety can be complex and confusing. Below are frequently asked questions about the bonding process, Surety in general and Meadowbrook Direct.

Question: What is Surety?

Answer:At its root, Surety is a guarantee. The Surety bond company promises to become obligated to the obligee for the debt, obligation or conduct of the principal.

Question: Is Surety Insurance?

Answer:Surety is often thought of as insurance, but it’s actually a line of credit. In insurance, the insured transfers risk to the insurance company. In Surety, the principal does not transfer risk to the Surety company. If the Surety company pays a claim the principal will be required to pay the Surety company.

Question: How is my Surety bond premium calculated?

Answer:The premium is typically based on the size or penalty amount of the bond. Keep in mind, that Surety bonds are not insurance, they are third party collateral and that you’re responsible for paying all bond claims in full.

Question: How do I know if I need a Surety bond?

Answer:The obligee will determine if a bond is required. Most city, town and/or county websites state their bonding requirements.

Question: Why are you able to save me on average up to 25%?

Answer: You typically have to go through an insurance agency to buy a bond form a Surety company. The agency charges fees, and the Surety company pays the agency commission. By offering these bonds direct, we are able to lower our acquisition costs by eliminating commissions, and we do not charge additional fees. All of this means you save.

Question: What if I cannot find the bond I need?

Answer:You can contact us toll free at (866) 207-5520 or email us as [email protected]. We are standing by to help you through the process.