Electronic Surety Bonds

Electronic Surety Bond

Electronic Surety Bond

Issued manually with digital signatures for each person signing the bond.

Digital signatures provided by companies like DocuSign, JotForm, HelloSign, PandaDoc, Adobe Sign, Qwilr, HoneyBook, AND.CO, Proposify, GleanQuote, SignNow and eSign Genie.

Data extracted manually or by OCR, with potential errors.

More efficient than paper bonds with wet signatures, but not as efficient as Digital Bonds

Process for issuance

The surety bond form is completed by filling in blanks on the form before printing.
The person manually executing the bond provides evidence they are authorized by a manually prepared power of attorney form confirming the authority level.
E-signatures are added to the document
The original bond is emailed to others that need to add their e-signature

The receiver of the bond needs to confirm:

Bond form is completed accurately
Power of attorney is completed accurately
Limit of authority is consistent with the bond amount.
Notary for accuracy and consistent with person executing the bond
Surety is licensed in the jurisdiction
Surety has an acceptable BEST rating
Surety has an acceptable T-List for the bond amount.
As an extra step some bonds require additional wet signatures as witnesses.

Validation

One the bond review is complete the receiver needs to validate the bond by manually contacting the surety or by submitting a manually prepared form to the surety

Digital Bond

The surety bond is provided with a PDF image of the standardized text with importable data elements and a Bond Validation Number (BVN)

With the BVN all stakeholders can both validate the bond and receive the PDF image with surety bond data set for efficient data exchange.

Pros and Cons

Pros

Follows traditional work flows

Look and feel the same as a paper bond

Cons

Simply confirms the person signing the bond is the person who signed the bond.

Data still need to be extracted manually

No data administration efficiency gain

No verification of bond data

Alternative

Digital Bonds

SRC Digital Insurance Services

Digitally Connecting Stakeholders with Capital & Financial Markets

Electronic Surety Bonds

Electronic Surety Bond

Pros and Cons

SRC Digital Insurance Services

Digitally Connecting Stakeholders with Capital & Financial Markets

Electronic Surety Bonds

Electronic Surety Bond

Pros and Cons

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