WHAT IS A SURETY BOND?
A surety bond is an agreement between three parties. The person in need of the bond (the principal), the person who is protected by the bond, such as the government entity (the obligee) and the one who issues the bond (the surety).
HOW DO SURETY BONDS WORK?
Surety bonds guarantee that specific tasks are completed. This is accomplished by bringing the principal, obligee, and surety together in a mutual, legally binding contract. If the principal fails to fulfill the task, the obligee can make a claim to recover the losses. The surety company is financially obliged to cover the damages of the claim up to the bond amount. The principal is then required to reimburse the surety for the amount paid to the claimant. Contact us to find out more about surety bonds and if they are right for your business. A FREE quote will be provided in as little as 24 hours.
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