Frequently Asked Questions
What is Propeller?
We are not a market, but rather an MGU platform that aggregates several markets and automates the entire surety purchase process for instant bond issuing. We white label a free URL for your agency, and any bond purchased through your link is your commission and your relationship.
What is a surety bond?
A surety bond is a legally binding contract between three parties: obligee, principal and surety that ensures certain contractual obligations will be met.
What is the cost for signing up and getting a URL?
The URL is FREE to Agents, and Propeller pays standard commissions for every bond purchased.
What is the appointment process?
You will receive DocuSign documentation that will be an agreement very similar to any carrier relationship, allowing us to pay commission. Appointments will be issued same day after we receive the completed HelloSign documents and documentation requested (W-9, Copy of Agency License, E&O dec page, ACH Direct Deposit Form, Signed Propeller Agreement).
What is the application process?
The agent will have a URL issued to them by Propeller. Search for a bond by state and/or type to find the electronic application.
How is Propeller compensated?
We receive an override from our carriers. We are able to seed the lion’s share of the commission (30%) to our agency partners solely stemmed from the cost-effective technology we have implemented.
Are there any contingency bonuses or will losses affect me as the agent?
If there is a loss - NO! Your current book of business will remain unaffected.
We pay agents in real time (on a monthly basis) therefore, we do not have a contingency agreement with our carriers or agency partners.
Where can I purchase a bond?
Our products are available in all 50 states.
What is the rating of your carriers?
All Propeller carriers are A rated.
Does Propeller sell bonds direct to clients?
No. Currently we only sell bonds through our agency partners.
How much will my bond cost?
The cost of your bond will vary based on your bond amount, credit and various underwriting factors.
Why do I need to submit an application in order to get a quote?
The application contains all the necessary information that is on the bond copy. We require this so we automatically issue the bond through our system. The information from the application is mapped exactly where it needs to go on the bond form.
Will Propeller Automatically mail an Original Bond to the Bond Applicant if the Obligee Requires an Original/Wet Signature/Raised Seal?
If an obligee is requiring a wet copy with raised seal please let us know right away and we will get one mailed.
What is a performance bond?
This is a contract bond that is required in order to perform work on public projects. Sometimes private owners also require a bond as well.
How do I get my business bonded and insured?
For insurance, reach out to your insurance agent. For bonds, you can find your bond, complete the application, pay for an receive your bond all through our website.
Does Propeller Bonds work with credible insurance companies?
Yes, all of our carriers are A rated by A.M Best.
How long will it take to get my surety bond?
It depends on the requirements for the bond. We have thousands of instant issue bonds that automatically issued to your immediately after purchase. If a bond requires additional underwriting it will be referred to our underwriting department who will be in contact with you within 48 hours.
What forms of payment do you accept?
We accept all debit and credit cards. We do also accept an electronic check or a mailed check.
Can I spread out the cost of my surety bond over time?
At this time we do not offer this option.
What is personal & spousal indemnity?
Indemnity is an agreement between the principal and the surety company stating that if the surety company pays out money than the principal will pay them back. Surety is a credit product so you can think of this similarly to a letter of credit where if the bank gives you a loan then you would be required to pay the money back. Essentially that is what surety is as well, but the principal would only need to pay if there was ever a claim on the bond and the surety paid out money.
What should I use for surety bond effective date?
Typically the obligee (entity requiring the bond) will advise you on what effective date should be used. In most instances it should match the date of your license/ the date the work project begins.
How do I know the bond amount to request?
The obligee (entity requiring the bond) will determine the amount. It is usually a statutory requirement.
Does Propeller Bonds offer bail bonds?
We do not.
Does Propeller Bonds provide other insurance products in addition to bonds?
We do not.
Will Propeller Bonds notify me when my bond is due for renewal?
Yes, we will send out an email 60 and 30 days out that your bond if up for renewal a which point you will be prompted to make a payment. If you are enrolled in autopay the card on file will be charged for the bond. And it will automatically renew. Any documentation required, a continuation certificate or a new bond form, will also be provided. If another payment method was used or the card expired we will notify that we need updated payment information in order to renew the bond or it will be cancelled.
How is surety different from insurance?
There are several differences. Insurance is an agreement between the insured and insurance company. Losses are expected and not recoverable. Premiums paid cover both costs and losses. Whereas, surety is a three party agreement between the obligee, principal and surety company. Losses are not expected and recoverable (because of the indemnity agreement). Premiums cover costs.
Who is the obligee?
The entity requiring the bond. Usually a municipality or the federal government.
Will Propeller work directly with an agents customers at the agents request?
Yes, we will act as your surety department and assist with anything required to issue the bond.
Who are the three parties on the surety bond?
Obligee (entity requiring the bond), Principal (similar to an "insured"), and Surety Company (company guaranteeing the bond, usually an insurance company).
What type of surety bond do I need?
You will need to ask whoever is requiring it of you to figure this out. Is it tied to a license or a court or a performance?
What happens if there is a claim filed on my bond?
The surety will get notified by the Obligee that they are claiming on the bond. A claim does not automatically mean a loss. The surety will work with the Principal to try and resolve the issue or reason for claim before paying out any money.
If I close my business before my bond expires can I obtain a refund on the bond?
The first year is fully earned premium. Renewals can be prorated if cancelled.
Do I need a surety bond?
You need one if the government or entity is requiring it of you in order to do an action (obtaining a license or performing an action).
Why do you need my social security number?
Surety is a credit product and a lot of time guarantees that the Principal will do an action or pay money. Therefore the surety company wants to make sure the Principal is credit worthy in order to support the bond. Very similar to how a bank would evaluate a company to provide a loan. Rest assure our credit check is a soft inquiry.
What is Surety Bond Collateral?
Collateral is money that is required by the surety company in order to support the bond.
What is Commercial Surety Bonding?
Commercial surety are bonds that fall under a few categories: license and permit and court.
What is Contract or Construction Surety Bonding?
Contract bonds are bid bonds and Performance and Payment bonds.
What type of surety bond do I need?
You will need to ask whoever is requiring it of you to figure this out. Is it tied to a license or a court or a performance?
Will bad credit affect my Surety Bond?
It depends on the type of surety bond you are requiring. Low credit could result in a higher premium or the bond being declined to be written by the surety company.
What is a Surety Bond Term?
The length of time the bond is enforce, usually a year.
What is a Surety Bond Renewal?
This is when the term expires and the bond renews.
Do Surety Bonds Expire?
Yes. Usually the term is annually.
How Often Do You Pay For A Surety Bond?
On an annual basis.
How Long Does It Take To Get Bonded?
Depends on the type of bond and information required. Most of our bonds are instantaneous while others could take 1-2 business days.
What If I Have Another Question?
Please contact your underwriter. If you are unsure of that person send your question to support@propellerbonds.com
What can I expect after my bond application has been submitted to underwriting for review?
We will contact with additional information either or you will receive an email stating you need to pay for your bond. Once the bond is paid for it will be issued.
What do I do once I receive the ``Congrats on Your Bond Purchase`` email?
This will have your bond documents. In most cases you need to sign the bond and then turn it in to the Obligee (entity requiring the bond).
Who can I contact regarding the status of my bond application?
Contact us (your underwriter or support@propellerbonds.com).
How can I get an original bond mailed to me & how long will it take to arrive?
Contact us (your underwriter or support@propellerbonds.com) and let us know that you need the bond mailed. We can discuss if you need it overnight or normal mail.
What if I cannot locate the Bond Application I am needing?
Contact us (your underwriter or support@propellerbonds.com).
Does Propeller offer electronic filing on certain bonds?
Yes, If accepted by the obligee we will electronically filed the bond on your behalf. If your bond can be electronically file you will be advised of this in your purchase email ( EX. We currently electronically file all WA, OR, CA contractors license bonds).
How will I pay for my bond renewal?
You will be sent a email prior to your renewal to pay for an obtain your renewal bond. If you are enrolled in autopay the card on file will be charged for the bond and it will automatically renew.
How will I obtain bond documents required for my bond renewal?
We will automatically send those documents once the renewal is paid.
What is the ``Share the link`` button do?
This allows a person to send to another to complete the bond transaction.
Can I save my application to complete at a later time?
Yes, we have a save for later button. You will receive an email with the link to complete the transaction.
How long is the ``Share the link`` email valid for?
Seven days.
What kind of Credit Check is used for my application?
A soft pull. Will not affect your credit score. Propeller pays all credit check fees.
Why does my spouse have to sign the bond?
The surety requires spousal indemnity to ensure assets over to them if the surety has to collect from you due to a payout on a claim.
What do I do with my bond once I receive it?
Sign it and turn it in to the obligee (entity requiring the bond).
Why Use a Surety Bond instead of a Letter of Credit?
Because it is required by statute. But also, you can free up your letter of credit for other things.
Who receives the bond application submission/final approval emails?
The agent and client will be included in all emails.
Is there a fee for mailing an Original Bond to an applicant?
Yes, If expedited shipping is required.
If I am an Agent applying for a bond on behalf of my customer, do I have to select yes to the credit question on the application?
Yes, you may select yes with the permission of your client.
If an Original Bond is required by the Obligee, will the bond applicant/agent receive a copy of the bond via email?
Yes, the client and agent always receive an electronic copy.
Does Propeller Bonds have a portal for agents to view their current bonds, upcoming renewals, & accounting items?
Not at this time. But we are working on it.
How can I schedule a Live Demo with Propeller Bonds?
Email Danny Goff, danny@propellerbonds.com and let him know you are interested.
Does Propeller assist with Book Rolls & who do I contact about this?
Yes, please contact Katie Navarro, katie@propellerbonds.com with your interest and she will walk through the process.
Does Propeller required a minimum production in order for an agent/agency to get appointed?
There are no minimum production requirements.
Processing an application?
Check out these helpful videos to guide you through!
Have Any Questions?
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