How Surety Premium is Calculated
Surety premium is calculated based on several factors that assess the risk and financial stability of the party seeking the surety bond. To determine the premium, the surety provider considers the applicant’s credit history, industry experience, financial statements, and the type and size of the bond required. The premium is typically a percentage of the bond amount, often ranging from 1% to 5% annually. A standard rate is 2.50% to 3.00%. The lower the risk profile and stronger the financial position of the applicant, the lower the premium will be.
Premium = Rate * Bond Amount
If you need a quote or estimate for a surety bond, contact any surety professional at Parrot Surety Services. Our experts can give you a more accurate estimate for each type of surety bond financial guarantee.
Surety premium is calculated based on several factors that assess the risk and financial stability of the party seeking the surety bond. To determine the premium, the surety provider considers the applicant’s credit history, industry experience, financial statements, and the type and size of the bond required. The premium is typically a percentage of the bond amount, often ranging from 1% to 5% annually. A standard rate is 2.50% to 3.00%. The lower the risk profile and stronger the financial position of the applicant, the lower the premium will be.
Premium = Rate * Bond Amount
If you need a quote or estimate for a surety bond, contact any surety professional at Parrot Surety Services. Our experts can give you a more accurate estimate for each type of surety bond financial guarantee.
