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.