Some medicare bonds can be expensive, but there are ways to save money on them. It’s important to look for both the best price, but you also need to make sure that you buy the bonds from a reputable company. It’s never worth it to sacrifice trust for a little bit of financial savings.
The first thing you can do to save money on your medicare bond is to make sure that you fill out the surety bond application completely. Approvals are granted based on credit, time in business, and many other factors; leaving out information will hinder your ability to get the best price possible.
Secondly, you should always type or print with block lettering on the application itself. Just as missing information can keep you from getting approval or a lower price, so can illegible writing. The easier the underwriters can read your application, the better impression you will make on them. And, of course, if your application is readable it will speed up the application and approval process!
The third thing you can to save money is to really show your financial stability. Don’t just give them what they ask for – go a step beyond. When they ask you to list your liquid assets (or your bank accounts), go ahead and attach the first page of your last banking statement to the application. The more information you provide them, the easier you make their decision to provide you with a bond. Bond approval is based heavily on credit, so don’t be shy about providing financial information.
The fourth step is to make sure you include your resume as well as the resume of any other company owners with the application. The underwriters will certainly be looking for experience in your field, so provide them with any information that will increase their level of comfort with your experience and stability.
The fifth thing you should do is to be clear about the type of bond that you need. “Surety Bond” is a generic term, and it’s not descriptive enough. The underwriters will want to know exactly what kind of Surety Bond you need. You can get this information from the person or government agency who is requesting that you get a bond. They should also provide you with a Bond Form.
The sixth thing you can do to save a little money is to make sure that all spouses and business partners involved in this application have a high credit score. The underwriting approval will be based on the lowest credit score. In some business situations, an average credit score is taken based on all parties credit scores involved, but not in the Surety Bond situation. Make sure that all involved people have high credit scores.
The last thing to consider is that you should always provide extensive contact information. This is perhaps the most overlooked and easiest change to implement. When underwriters are reviewing your application, if they can’t contact you, they will give you either a high price or simply deny your application. Make sure you include all of the information they need, but also include all of your contact information so that they can reach you easily.