As the leader in providing surety bonds (bid bonds, construction bonds, etc.), it is not uncommon that we get questions from people wanting to know exactly what a bonding company is, so we thought that we’d give you some information that could be worthwhile.
Bonding companies typically provide several lines of insurance, such as Errors & Omissions (E&O) insurance or Property & Casualty insurance as well as bonds.
We...
Thursday, June 27, 2013
Tuesday, June 25, 2013
About Surety Bonds
A surety bond is a particular type of bond that involves three different parties. These are the principal (the entity being secured against default), the obligee (the entity who has the rights to the money or service owed), and the surety (the entity promising to shoulder the liability in case the principal defaults.There is a wide range of circumstances or situations where this type of bond can be used. Basically,...
Friday, June 21, 2013
Surety Bond for Contractors
A contractor’s surety bond is an agreement between the contractor, client and a surety issuing company. The contractor is also referred to as the bond principal, while the customer is referred to as the obligee. In most states, the contractor is required to be bonded before a license can be issued. Big projects normally require a specific bond that covers only that particular project.
Functions of the Bond
A...
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