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Filing a Claim on a Surety Bond

What is a Surety Bond

Surety bonds are contracts between three parties: the surety (the party issuing the bond), the obligee (the party requiring the bond) and the principal (the party purchasing the bond). A surety bond is designed to protect against losses incurred as a result of a breach of contract by the principal in performing their obligations to the obligee. In other words, if something goes wrong, such as a contractor not completing work, a surety bond will help protect you.

The purpose of a surety bond is to ensure that if there is a breach of contract by either one of these three parties, those who are affected by that breach can be justly compensated. Surety bonds provide you with financial protection should something go awry and allow those affected by adverse actions or inaction to find adequate recompense from loss or damages.

If you are considering filing a claim on an existing surety bond, it’s important for you to understand how these bonds work and what your options are for making successful claims. This guide provides you with essential information like how to make sure your claim is approved, understanding deadlines for filing claims, what documents must be provided when filing – and much more!

What are the Steps to Filing a Claim on a Surety Bond?

Surety bonds protect businesses and individuals from financial losses due to non-performance of a given contract or agreement. If a party involved in a surety bond fails to meet the obligations outlined in the agreement, or if a settlement can’t be agreed upon by the parties involved. Disagreement regarding a settlement is the most common because it’s expensive to bring in the surety with extra court costs then filing a claim on a surety bond may be the best option. Below is an overview of the steps to filing a claim on a surety bond to get the necessary compensation for a breach of contract.

Collect Necessary Documentation

Before filing a claim on a surety bond, the creditor must first find out who the surety is and what type of bond it is. Once the surety is identified, the claimant should collect all necessary documents to prove their claim according to the terms of the agreement before submitting it. This includes any contracts that may have been breached, as well as invoices, copies of personal checks and other records related to performance on the project or task for which payment was required. Additionally, if there were any written agreements from either party related to payment or completion of services or goods, these should be included in the filing. All documentation should be kept together in one folder or file for easy access.

Submit Claim to Surety Company

Once you’ve gathered all the evidence and information necessary to support a claim against a surety bond, your next step is to submit the claim to the surety company which issued it. The easiest way to do this is to contact the surety company directly. As you are waiting to hear from the surety claims department, it would be best to fill out the Affidavit of Claim Form so you will be ready to send once notice and a claim number has been provided. We have included a sample Claim Form in our blog section. Be sure that you have all of your supporting documents ready.

The surety company will begin its own investigation into whether or not they are liable on the bond, however they can also ask you — as part of their investigation — for copies of documents and other proof that supports your claim.

Depending on how complex your case is, it may take several weeks before the surety company has enough information to make a decision. In addition, the fact that many claims require adjudication by a court can add additional delays depending on jurisdiction and regulations.

Finally, make sure you keep accurate notes and documentation throughout this process. This will help ensure that everything is properly handled in accordance with legal requirements and that no detail is overlooked during proceedings or negotiations.

Await Response from Surety Company

Once you have collected all of the necessary documents and filed your claim, the surety company will conduct an investigation. During this stage, the surety may request additional details or clarification on any documents you have submitted. In some cases, a written statement from witnesses or parties with knowledge may be required.

The insurer will also decide whether it has sufficient proof to validate your claim and make a decision about liability for the bond amount that was claimed. It is important to remember that the surety company’s responsibility is to verify facts related to the claim and obtain evidence to back up its decision. They are not making judgments about who is at fault in order for them to pay out on a bond claim.

Once the investigation has been completed, the surety company will either approve or deny your claim based on their findings. If they approve it, they will typically notify you so that you can collect on your bond.


Before filing your claim, it’s important to consult with legal counsel and understand your rights with regards to surety bonds. There may be statutes or laws in place which limit how claims can be made against bonds as well as how broadly they can be interpreted. Taking the necessary steps to understand your legal rights is essential if you want to ensure that any settlements are properly filed and resolved in an equitable manner.

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