Surety Bond is a simple agreement usually between three parties: Principal, Obligee and Surety. The point of these three parties is that the surety makes a guarantee to the oblige (for example government) that the principal (business owner) will do their duties. Surety bond is an insurance policy that is for the requiring party called the obligee. In some cases, obligee is a governmental agency and the bond can be considered as the protection of the government and its citizens.
There many ways to explain how surety bond works but let’s choose the easiest one and understand how to use a surety bond, what surety bond to choose and how to obtain a surety bond.
This agreement works as a form of insurance to the obligee and they are the one who is getting benefits and a file can be claimed in the case that the bond’s promise is not met.
When you’re required to get a surety bond you are expected to comply with the terms of the bond, in case of refusal, claims can happen. In case of a surety bond claim, you are required to pay every the whole amount without any fewer pennies, plus legal costs. The bond is sponsored by the surety, however, there can be an indemnity agreement (also known as a general agreement of indemnity) requirement to be signed by your company and all owners personally.
So what surety bond are you required to have? There are many contracts that are specific, in this case, you’ll need a contractor bond. In case of other not specific contracts, there are other categories that you can be under, check them out:
Safeline Insurance is ready to take care of any documentation connected with you Surety Bond contract. Get in touch with us at (888)821-3636 and let our live agents do the best for your successful paperwork. Get free Surety Bond Quote online on our website.