What is a Surety Bond?
A surety bond or surety is a promise by a surety or guarantor to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract.
- The principal is the individual or business that purchases the bond to guarantee future work performance.
- The obligee is the entity that requires the bond
- The surety is the insurance company that backs the bond. The surety provides a line of credit in case the principal fails to fulfill the task.
Why Would I need a Surety Bond?
- Contractor Bond – Construction professionals often need this before they can begin work on a project.
- License Bond – When required of you but not for a specific contract. Often need to get a license or permit.
- Fidelity Bond – Bond insurance for your company not required by anyone.
- Court Bond – When required by a Court.
When you are in the market for any type bond, call us and we will respond with prompt and professional service to meet your needs.