• December 20, 2016

How to Save Money by Lowering Your Bond Costs

How to Save Money by Lowering Your Bond Costs

How to Save Money by Lowering Your Bond Costs 1024 768 Patrick J. Thomas Agency

Attorneys must be proactive when it comes to securing bonds for their clients. This will help them decrease the amount of time it takes them to become approved and limit the costs that are associated with securing the bond.

While surety bond costs cannot be drastically changed, they can be limited if attorneys take the following steps:

#1: Be Prepared to Give the Court a Proper Bond Amount

If you are looking for an injunction bond or TRO, be prepared to properly frame the value or dollar figures involved to help the court set a realistic bond amount. In a non-compete situation the court will want an idea of the income a party would be paid if they are allowed to continue with the action that the injunction is trying to halt.

#2: Seek Preliminary Approval

Preliminary approval helps you save money and time in the event there is a problem with the bond underwriting. Don’t go to court and incur that cost if you know a bond might be difficult to obtain ahead of time. It also makes it so that your client understands the purpose of the bond and its function ahead of time so they aren’t surprised. When you work with a surety bond agency and complete the application process, you are reducing the time it takes to become approved. It also makes it easier for you to get ahead of any potential problems obtaining a bond once the court confirms a bond amount.

Make sure to be clear on which type of bond you need and who the bond is for, and provide as much information as you can to speed the approval and underwriting processes along.

#3: Know the Value of Items

In many cases, the value of the bond is determined by the value of the item/asset that the bond is for. In the case of a vehicle/title bond, the DMV requires a fair market value for the vehicle. If the value of the vehicle is over inflated the price of the bond can be higher than is necessary.

Apply Online Today

To get the process started right away, apply for a surety bond online with the Patrick J. Thomas agency. If you have any questions, call us at (612) 339-5522 or send us an email today.

 

Disclaimer: this is for informational purposes only and is not intended to be legal advice. If you need legal counsel, please contact an attorney directly.