A surety bond is an agreement between three parties in which the surety binds itself to discharge the contracted obligations of a principal to an obligee in the event that the principal fails to fulfill the contracted obligations.

Commercial Surety Bonding

Customs and excise, license and permit, fiduciary, lost document, and various special commercial bonds are different classes of surety bonds.

Commercial surety bonds stimulate compliance with a variety of important laws and regulations. Most commercial surety bonds are mandated by government bodies and agencies (obliges) and specified in the requirements of various acts and regulations that pertain to particular business activities.

Contract Surety Bonding

Contract surety bonds are required on most government projects and are typically specified in the private and institutional sectors, taken out most regularly by the construction industry. Contract surety bonds provide insurance to owners, sub-contractors and others that a contractor will ensure that plans and specifications are completed successfully and in a timely manner.

For more information on Surety Bonds, contact MyInsuranceBroker today!