The process and terms of filing a claim against a bond typically lie within the bond form itself. Being that there are an endless amount of bond forms and bond types out there, it is prudent to obtain a copy of the bond and then ascertain your rights under that bond.
Typically speaking, however, the bond acts as a safety net and last resort in the case where the principal under the bond has been nonresponsive in correcting the deficiency in performing the outlined obligation in the bond. As such, Bond claims may be simple or become complicated and complex. It is prudent, many times, to get qualified assistance if a bond claim does, in fact, need to be made.
Either way, the process is not typically a stroke of a check to the claimant by the surety. As the surety has two (2) masters it must please. One is the principal, as it can’t go out settling claims if the principal may deem them invalid. However, the surety is also bound to the obligee and must act in “Good faith” and prudently address and handle the claim that is being made against its bond. As the surety is also governed by the insurance laws of the state in which it is writing the bond, it must act appropriately. The Claims Department of the actual surety insurance company will handle the processing of the claim (s). It will typically ask for Proof Of Claim from the claimant in addition to asking for information and possible defense of the claim from the Bond Principal.
The specialists at The ProSure Group work to help every client get their bond questions answered quickly and easily. Let us know if you have any other questions about surety bonds. We can assist you with all your surety bond needs.