Sometimes, a business may be required to have a surety bond to guarantee that work they are contracted to do will be accomplished. Each surety bond must be uniquely tailored to meet specific needs.
There are three parties involved in a surety bond: the principal, the obligee, and the surety. The principal purchases the surety bond to guarantee quality and completion of contracted work. The obligee is the entity who requires the principal to purchase the bond. The surety is the entity that issues the bond and financially guarantees the principal’s ability to complete the contracted work.
If the principal does not complete the work as contracted, the obligee can make a claim for payment from the bond up to but not exceeding the bond amount. The principal is then obligated to pay back the claimed amount to the surety.
There are many types of bonds, everything from School District Treasurer Bonds, Guardianship Surety Bonds, ERISA Bonds, and many others.
- Simple Applications
- Multi Year Bonds available for some coverages
- Flexible Payment Terms
- And much more!
Our insurance agency serves clients in Pennsylvania, New Jersey, Delaware, Maryland, Virginia, North Carolina and surrounding states. We pride ourselves on understanding your industry and providing simple solutions for your insurance program.
Contact us today and find out how we can help reduce your cost, enhance your coverage, or improve your peace of mind!