What are Surety Bonds?
Surety Bonds are financial instruments that promise to pay a party (obligee) a certain sum of money if an insured cannot fulfill the terms of a contract or obligation. Surety bonds are often required in construction activities and government work.
For example, a state utility company may require its general contractors to have payment bonds to guarantee that sub-contractors and suppliers will be paid. There are many types of surety bonds.
Major Types of Surety Bonds
Contract (Construction) Bonds
Guarantee performance under a government contract, including:
Required by law for various industries and occupations to guarantee legal compliance, including:
License and permit bonds
Protect your business and your customers against employee theft, including:
Business services bond
Employee dishonesty bond
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