A guarantee, surety bond, or surety is a pledge made by one party to take over a borrower’s debt obligations in the event of a default.
A surety bond or surety is typically a commitment made by a surety or guarantor to pay one party (the obligee) a specific sum of money if a third party (the principal) fails to fulfill any duty, like upholding the terms of a contract. The surety bond guards the obligee against losses brought on by the principal’s breach of the contract.
Surety bonds vary depending on your industry. A contract bond is a guarantee from a surety to a project owner (obligee) that a general contractor (principal) will abide by the terms of a contract.
Commercial bonds are a diverse group of bond types that do not fall under the contract category.
Business service bonds are typically for firms that frequently access clients’ homes or places of business, such as home health care and janitorial services.
Most people and organizations have no idea what a surety bond is before the need for one arises. Doing internet research on the exact bond requirements is a good idea when you hear that you or your business must provide a surety bond. You want to contact a reputable, customer-focused agency that provides surety bonds.
Hignojos Insurance Agency experts will advise you on obtaining your surety bond and are knowledgeable about the various requirements. We always collaborate with reputable, A-rated surety bond companies and provide competitive pricing.
Make use of the services of industry experts who are ready to assist you with risk management and provide you with the best surety bond package for you and your business.