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A Surety Bond ensures that contractual obligations are fulfilled
A surety bond is an insurance tool that is used to limit risk and financial loss. It guarantees that a party fulfills its contractual expectations in a timely manner while adhering to state laws and industry regulations.
Three parties are involved:
A government agency (Obligee) hires your construction company (principal) to build an office building. Your company is required by the Obligee to secure a Contractor License Bond from the Surtey guaranteeing that you will fulfill the terms of the contract.
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From start-up to well-established, all businesses need additional coverages to secure their operation.
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