Surety Bonds
Many people are unfamiliar with the process of obtaining
Surety Bonds. Bonds establish the relationship between you
(the principal), the entity you're working for that requires
the bond, and the surety company issuing the bond.
What is a Surety Bond?
A bond guarantees the fulfillment of a legal obligation.
It's a three-party agreement where the third party (surety
company) guarantees to a second party (obligee or owner)
the successful performance of the first party (principal).
One of the primary uses of bonds today is to protect public
and private funds from financial loss.
A Surety Bond is not
an insurance policy. An insurance policy assumes that there
will be a loss, so the premium for an
insurance policy is calculated to cover losses that will
occur. A bond, on the other hand, is an extension of credit
with the assumption that the legal obligation will be fulfilled,
and consequently, there will be no loss. The bond premium
paid to the surety covers only the underwriting expenses
of the surety company. When losses occur, they have a significant
impact on the surety company's financial results.
- License & Permit Bonds
- Bid Bonds
- Performance Bonds
- Fidelity Bonds
- Employee Dishonesty Bonds
- Court Bonds
- Lease Guarantee Bonds
Contact
To learn more about the coverage that best suits your organization
and to purchase insurance contact us
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