If this is the first time you've been required to obtain a surety or fidelity bond, the following information may be helpful. Please feel free to call with questions about the particular bond you need.
A Surety Bond guarantees the performance of a contract or other obligation. Bonds are three-party instruments by which one party guarantees or promises a second party the successful performance of a third party.
1. The Surety (THE INSURANCE COMPANY) is usually a corporation which determines if an applicant (principal) is qualified to be bonded for the performance of some act or service. If so, the surety issues the bond. If the bonded individual does not perform as promised, the surety performs the obligation or pays for any damages.
2. The Principal (YOU) is an individual, partnership, or corporation who offers an action or service and is required to post a bond (often times for licensing). Once bonded, the surety guarantees that he will perform as promised.
3. The Obligee (THE ENTITY REQUIRING THE BOND) is an individual, partnership, corporation, or government entity which requires the guarantee that an action or service will be performed. If not properly performed, the surety pays the obligee for any damages or fulfills the obligation.
The purpose of a surety is to protect public and private interests against financial loss.
THE SEVEN FAMILIES OF SURETY BONDS:
1. Fidelity
2. Public Official
3. Judicial
4. Fiduciary
5. License and Permit
6. Contract (Bid & Performance)
7. Miscellaneous and Federal
If you have any questions, or for a free quote:
Call: (800) 995-0997 or e-mail info@ameribonds.com
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