How to calculate the cost of a bond

October 17, 2018 - Surety 101

Hello, I’m Sheila Thompson, a Principal at Rosenberg & Parker of Canada. If you have surety needs, it’s important to understand how to calculate the cost of a bond:
• Rates are calculated as a rate per thousand and are based on the bond penalty in commercial surety or the contract amount in contract surety
• Rates can range from a couple of bucks per thousand to $30 per thousand (on the high side)
• Rates are negotiated with each surety company at the time a bond program is established, and can be renegotiated on a case by case basis
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