Surety Bonds Types

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Surety bonds are contracts between at least three parties and are usually prepared on a specific surety bond form. Surety bonds are generally issued by an entity on behalf of a second party, guaranteeing that the second party will fulfill an obligation or series of obligations to a third party. In the event the obligations are not met, the third party will recover its losses via the surety bond. Through the surety bond, an insurance company agrees to uphold the obligations or contractual agreements made by the principal, if that principal fails to do so. The principal will generally pay a premium for the surety bond in exchange for the surety company’s financial strength behind the bond.

There are many different kinds of surety bonds. Contract bonds or construction bonds can provide financial protection if a particular job is not performed as desired. Commercial or license and permit bonds are usually required by a state, county or city and guarantee that the provisions of applicable codes and laws that apply to particular activities will be followed.

We help our clients identify the bond they need and make it easy to get the bond issued. Our expertise spans all bonds and all states and we’re ready to help you with the bonding process.