| If this is the first time you've been required to obtain a surety or fidelity bond, the following information may be helpful:
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 BOND 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 Bonds
2. Public Official Bonds
3. Judicial Bonds
4. Fiduciary Bonds
5. License and Permit Bonds
6. Contract Bonds (Bid & Performance)
7. Miscellaneous and Federal Bonds
If you have any questions about bonds or being bonded, please don't hesitate to give us a call.
FOR FREE QUOTE ON YOUR SURETY BOND:
Call Toll Free: (800) 995-0997, or email info@ameribonds.com |
