Surety
Lance Surety Bonds
Lance Surety Bond Associates is a surety bond agency writing commercial, contract and fidelity bonds in all 50 states. Applications run online through the agency's SuretyCloud system; most bonds are quoted from its own office within minutes, and approved applicants can buy immediately and in most cases print the original bond straight away.
The bond lines cover license and permit bonds — contractor licenses, auto and motor vehicle dealers, freight brokers, collection agencies, mortgage brokers and bankers, money transmitters, telemarketing and seller of travel among them — plus contract bonds such as bid, performance and payment, stand-alone maintenance and supply bonds, and fidelity bonds including business services and employee dishonesty bonds. There is a pre-qualification path for contractors that need to establish maximum bonding limits.
Pricing is published as a range rather than a rate sheet. The agency says a surety bond typically costs 1% to 10% of the bond amount, that license and permit applicants with strong personal credit usually pay an annual premium of 1% to 3%, and that higher-risk applicants pay 5% to 15%. Programs are advertised for applicants with bad credit, and the site publishes a cost calculator, guides, and an education centre covering claims, renewals, requirements and indemnity agreements.
The firm began operations in 2010 and says it has written more than 40,000 bonds across hundreds of industries, placed with A-rated carriers. Its address is listed as 6063 Kellers Church Road, C-110, Pipersville, Pennsylvania.
Best for
Contractors, dealers, brokers and other regulated businesses that need a license, permit or contract bond quickly, including applicants with weak personal credit who have been turned down elsewhere.
What they do
- License and permit bonds
- Contractor license bonds
- Bid, performance and payment bonds
- Stand-alone maintenance and supply bonds
- Business services bonds
- Employee dishonesty and fidelity bonds
- Freight broker (BMC-84) bonds
- Auto and motor vehicle dealer bonds
- Mortgage broker and banker license bonds
- Money transmitter license bonds
Details
| Attribute | Value |
|---|---|
| Founded | 2010 |
| How they charge | Published premiums run 1% to 10% of the bond amount; license and permit applicants with strong personal credit typically pay 1% to 3% a year, and higher-risk applicants 5% to 15%. |
What stands out
- Says it has written more than 40,000 surety bonds since beginning operations in 2010
- Writes commercial, contract and fidelity bonds in every state
- Publishes typical premiums of 1% to 10% of the bond amount, with strong-credit license bonds at 1% to 3%
- Runs its own online application system, with most bonds quoted from its office within minutes
Common questions
- What is a surety bond?
- A surety bond is an agreement between three parties - a principal, an obligee and a surety - assuring them all that something will happen. In general these bonds protect consumers and hiring parties from fraud, abuse and penalties. The most common type in the U.S. is the license bond, filed with a federal, state or local business license to ensure the bonded principal complies with the rules of that license.
- How much does a surety bond cost?
- Rates depend on the obligee's risk preferences, the applicant's credit rating and the type of bond required. For license and permit bonds, applicants with strong personal credit usually pay an annual premium of 1% to 3% of the total bond amount, while applicants with higher personal risk or in higher-risk markets typically pay 5% to 15%.
- Is the bond amount the same as the bond cost?
- No. The bond amount, or penal sum, is the full coverage required by law; the cost is the premium, a percentage of that amount. A $20,000 contractor license bond approved at a 5% rate costs $1,000. In the event of a claim, however, the business can be liable for the full bond amount.
- Who needs a business services bond?
- Companies whose employees have access to customers' property or money, most commonly cleaning companies, repair services, security companies, moving services and child care providers. The bond compensates for losses if an employee commits theft, embezzlement or fraud against a customer, and in some cases it is a licensing prerequisite.