Insurance companies provide bail bonds through a bail bondsman, who acts as an agent for a company to secure the release of an accused defendant pending trail. Generally, the rate charged by the bondsman is ten percent of the amount of bond. In return, defendants are required to put up collateral, like a second deed of trust or the mortgage of ones house. After a final decision has been made on the case, the bail bond is exonerated and it is returned to the insurance company. In cases wherein the person under trial absconds or does not appear in court, the bonds get forfeited unless the defendant returns. A bail bond also acts like a financial guarantee to the court that the defendant would appear before the law each and every time the court orders.

A bail bond is valid for a period of one year, and if the case goes beyond this period, an additional premium has to be produced in order to keep the bail bond working. Additionally, bail bonds can be posted at most courts and jails. Most jails around the world accept bail bonds 24 hours a day, 7 days a week, 365 of the year. There are different types of release options that one can choose from, including cash option, security bond, property bond, own recognizance and citation release. It is a judge or a magistrate who sets the bail amount, depending on the law of a particular state.

According to industry experts, there are a few things that one needs to take care of before hiring the bail bond agent. One should only hire a licensed bail agent, and prior to any bail transaction one should ask for the bail agents license and identification. The person hiring the agent should also make sure that the bail agent charges only legal rates. It should also be made sure that copies of all signed contracts and agreements are also asked for.