How bail bonds work
The modern bail-bonding system isn’t as punitive as the old days, but it still has some powerful incentives built into it: A bond agent pays the bail of a felony defendant awaiting trial, guaranteeing his or her appearance in court and releasing him or her from jail and, technically, into the agent’s custody. In return, the agent charges the defendant a fee of 10 percent of the bail, usually paid in a combination of cash and property. Underwriting the agent’s bond is a large insurance company, which charges the agent a portion of the 10-percent fee. If everything goes right, money flows up and down this indemnity chain. However, if the defendant runs, or “skips,” as they say in the industry, a chain reaction is set off. The court’s bond will always be paid, thanks to the insurance company, but the bond agent faces massive losses if he or she is unable to apprehend the defendant. Enter the loss-prevention agent, the bounty hunter.
Therefore, the foundation of a good bail-bonding business isn’t necessarily built upon the ability to catch skips. Rather, a successful company is one that prevents clients from running in the first place. Besides choosing their clients carefully, effective bond agents also have to do a fair amount of babysitting, checking up on their charges on a regular basis and even making wake-up calls on the defendant’s court day.
For whatever reason, in a strong break with the rest of my tastes, I enjoy watching “Dog the bounty hunter.” But the other day I was scratching my head wondering how they made money. Turns out they don’t, but if they did, this is how they would do it.
