How are bonds different than insurance?
September 27th, 2009Most bonds are written totally different then insurance so just because you have had no claims does not guarantee you a great rate. Surety bonds are unwritten expecting no losses at all where when insurance is underwritten losses are expected. If a claim is ever triggered in a surety bond the chance of ever getting another one is very remote. In recent years the Surety bonds arena has changed and lower rates are a thing of the past. Many underwriters have changed how they write these types of bonds because of losses in the soft bond market a few years ago. Surety bonds are still a very viable protection that over the long term will save you money.
