bonding
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What is a surety bond?
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As opposed to insurance, which is a two (2) party contract between an insurance company and the insured, a surety bond is a three (3) party agreement between a Principal, an Obligee, and a Surety. As a condition of being granted certain licenses, permits, contracts, or prior to assuming duty as a public official entrusted with funds, or a court appointed fiduciary, it is required by many state and local governments (as well as the Federal government in many cases) that the party assuming the responsibility (the Principal) provide the requiring governmental body (or private party in some instances) (the Obligee) with a guarantee that the Principal will perform all of the requirements of the code and/or contract and/or the governing document or in lieu thereof the party making the guarantee (the Surety) will either perform the obligation themselves or pay a stipulated sum of money.
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A surety bond is an extension of credit in the form of a guarantee that provides protection to the party requiring the bond (the Obligee), but provides no insurance to the Principal.
Types of Bonding we can provide include:
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