A Surety Bond is a three-party agreement whereby the surety guarantees to the obligee (the project owner) that the principal (the contractor) is capable of performing the contract in accordance with the contract documents. Performance of the contract, which is the subject of the bond, determines the rights and obligations of the surety and the obligee.
Here are the eight different families of surety bonds:
Public Official Bonds
License and Permit Bonds
Contract Bonds (Bid and Performance Bonds)
Miscellaneous and Federal Bonds
Bonds can range from simple to complex. A business services bond is a fidelity bond that requires very little information and the bond can be executed in a few minutes. On the other hand, the requirements for performance and payment bonds are like making a loan with a bank. Financials, resumes, tax returns, etc. will be requested. These types of bonds may take weeks to be executed.
Independent Insurance Counselors offers complimentary quotes on Surety Bonds from multiple insurance carriers so you can protect what matters most in life.