SURETY BONDS

Building a strategy for success is critical in helping our clientele through the bidding process. From start to finish, we've got your back when it matters most.  

WHAT IS A SURETY BOND?

S

SURETY:

Insurance company that guarantees the work of the principal and is liable for claims against the principal up to the bond amount.

O

OBLIGEE:

Requires that the principal purchase a bond to attain a license or perform a service (usually a government agency).

P

PRINCIPAL:

Purchases the bond and agrees to perform the work in a compliant manner (ultimately financially responsible).

Surety bonds are typically purchased by principals to protect third-parties from a failure to meet certain contractual obligations. This form of risk transfer is executed through a surety company (typically subsidiaries or divisions of insurance companies which are regulated by state insurance departments). These contractual obligations can either be required by government authorities or private parties depending on the specific project. 

TYPES OF BONDS:

  • Contract Bonds

    • Bid Bonds

    • Performance Bonds

    • Payment Bonds

    • Maintenance Bonds

  • Commercial Bonds

    • License & Permit Bonds

    • Mortgage Broker Bonds

    • Misc. Bonds

  • Fidelity Bonds

    • Business Service Bonds

    • ERISA Bonds

    • Employee Dishonesty Bonds

WHAT ARE THE BENEFITS?

  • Provides ability to bid on larger projects

  • Increases understanding of company's financial health and risk capacity

  • Provides Post-Project protection to the Obligee

  • Builds an industry track record of performance and reputation

  • Provides Stakeholder financial protection