What You Need to Know About Surety Bond Insurance
As many people may know, a surety bond is a written agreement guaranteeing the satisfactory performance of a contractual obligation. This agreement provides for monetary compensation in the event that a principal fails to accomplish the job per specifications in the bond. There are many who may confuse surety bonds with insurances. They may think that their purpose are alike, but this is not the case. Here’s what you need to know about surety bond insurance. There are three parties in a surety bond contract are: The Principal – the party that purchases the bond The Obligee – the party that requires the bond The Surety – the party that issues the bond Do I need a surety bond? Do I need a surety bond? When do I need it and what are the risks if I don’t get one? These are questions which you may have pondered. Well, have no fear! Below we have highlighted some situations where you may need a surety bond. Licensing: Many industries require you to get a surety bond. This ensures that the applicant adheres to specific industry regulations. If they do not adhere to, then the someone may file a claim. Specific to...
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