Surety Bonds

A surety bond is defined as a three-party agreement that legally binds together a principal who needs the bond, an obligee who requires the bond and a surety company that sells the bond. The bond guarantees the principal will act in accordance with certain laws. If the principal fails to perform in this manner, the bond will cover resulting damages or losses.

Although they often go unnoticed, surety bonds play a major role in countless industries across America. If you’re reading this article, you’ve probably heard about surety bonds but are still confused about their exact purpose. You’re not alone. Even those required by law to be bonded frequently misunderstand surety bonds.

Thousands of surety bond types are out there, but some of the most utilized surety bonds fall into one of four major categories:

License & Permit                                    Construction Bonds

o   Auto Dealer Bonds                                           Performance Bonds

o   Contractor Bonds                                             Supply Bonds

o   Freight Broker Bond                                         Maintenance Bonds

 

Commercial Bonds                                       Court Bonds

Janitorial Service Bonds                                  Probate Bonds
Utility Bonds                                                    Executor Bonds

Lottery Bonds                                                  Guardianship Bonds

 

Please give us a call to discuss the specific bond you need for your business or circumstance.