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A Surety Bond ensures that contractual obligations are fulfilled
A surety bond is an insurance tool that is used to limit risk and financial loss. It guarantees that a party fulfills its contractual expectations in a timely manner while adhering to state laws and industry regulations.
Protects your customers from acts of theft, larceny, or fraud committed committed by your employees.
Used to guarantee the performance of a construction contractor.
Three parties are involved:
Example:
A government agency (Obligee) hires your construction company (principal) to build an office building. Your company is required by the Obligee to secure a Contractor License Bond from the Surtey guaranteeing that you will fulfill the terms of the contract.
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From start-up to well-established, all businesses need additional coverages to secure their operation.
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