Bumps

When it comes to medicare surety bonds, most people think only of acquiring it and don’t consider the options when it comes to how long of a term to get the bond for. The default option is one year, but many companies offer a multiple year purchase.

By paying for your bond for more than one year, you lock in your rate for the length of the term. For example, if you purchase your surety bond for two years, your rate would not change for the duration of those two years. Sometimes the issuing company also gives you a discount – as much as 15% to 20% off of the premium when purchasing for 2 or 3 years.

You should definitely ask your medicare bond agent about the options for extending your coverage past a year, since the options vary based on the type of bond and the company you are purchasing from. Also, your agent may ask for updated financials when you renew or extend your bond.

Most likely, you’ll need to provide the most recent business financial statements, updated credit reports, and current personal financial information.

The business financial statements are needed to give the company issuing the bond reassurance that your business is still stable and that your experience continues to grow in the field you work in.

Your credit report is required to ensure that you are still credit-worthy… it’s very important to maintain a high credit score so that you don’t risk denial of renewal on your surety bond.
The personal financial reports may be required to reinforce your financial stability. With surety bonds, credit and stability are key in both initial issuance and in renewals.

While providing this information each time you renew can be tedious, you have to recognize that a surety bond is an unsecured loan, and this information is crucial for the bonding company to know that the risk they are taking meets their requirements.