Think of a surety bond as a line of credit. If you can’t complete a project, the project owner can then tap into that line of credit to finish the project as necessary. Surety bonds are a three-party agreement.
The three parties involved include:
- The surety company supplying the bond
- The obligee; the project owner
- The principal; the contractor, organization or employer providing the work.
Contract Surety Bonds
Although basic surety bonds are common, there are many other types of bonds that serve different purposes. Options include:
- Bid bonds
- Performance bonds
- Payment bonds
Commercial Surety Bonds
Commercial surety bonds are often required by state laws and ensure some aspect of principal’s occupation.
- License and permit bonds
- Probate and court bonds
- Public official bonds
- Miscellaneous bonds
Fidelity bonds protect business owners and their customers against employee theft and dishonesty.
- Business services bonds
- Standard employee dishonesty bonds
- ERISA bonds
Contact our team to learn more about our surety bonding options.