If the bond is canceled
A surety cancellation notice may not free you from licensing obligations. Many agencies require an active replacement bond before you can keep or renew authority to operate.
Surety education
Claims and cancellation
Cancellation and claims follow the bond form and governing law. A canceled bond can interrupt licensing authority; a paid claim usually creates an indemnity obligation back to the surety.
Article
What to know
If a claim is filed
Claims are investigated under the bond’s conditions. A payment to a claimant is not “free insurance”—principals typically must reimburse the surety. Keep records of the filed bond, riders, and agency confirmations.
Last verified 2026-08-05. Universal surety concepts—not state-specific licensing rules.
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