Surety bonds are a type of financial guarantee that is often required by businesses and individuals to enter into certain contracts or activities. If the bonded party fails to meet their obligations under the contract, the surety bond company will be obligated to pay the obligee (the party who is owed the performance) up to the amount of the bond.
In the event that a surety bond claim is filed, it is important to follow the surety bond company's specific instructions for filing the claim. In general, however, the following steps will need to be taken:
- Contact the surety bond company. The first step is to contact the surety bond company and notify them that you are filing a claim. The surety bond company will then provide you with the specific forms and instructions that you need to complete in order to file the claim.
- Gather documentation. You will need to gather documentation that supports your claim. This documentation may include, but is not limited to, the following:
- The surety bond
- The contract that was bonded
- Evidence of the bonded party's failure to meet their obligations under the contract
- Any other documentation that is relevant to the claim
- Complete the claim forms. Once you have gathered the necessary documentation, you will need to complete the surety bond company's claim forms. The claim forms will ask you to provide information about the claim, such as the amount of the claim, the nature of the claim, and the supporting documentation.
- Submit the claim forms. Once you have completed the claim forms, you will need to submit them to the surety bond company. The surety bond company will then review the claim and determine whether or not it is valid.
- Negotiate the claim. If the surety bond company finds that the claim is valid, they will negotiate with you to reach a settlement amount. The settlement amount will be based on the surety bond company's assessment of the claim and the amount of documentation that you have provided.
- Receive payment. Once the surety bond company and you have reached a settlement agreement, the surety bond company will pay you the settlement amount.
It is important to note that the process of filing a surety bond claim can be complex and time-consuming. If you have any questions or concerns, you should consult with an attorney who is experienced in surety bond law.