Surety bonds are mainly three-party agreements that include a surety company, a principal (or company/individual performing the work) and the obligee (the project owner). A surety bond is basically a promise or commitment by a guarantor to protect one party against losses by paying them a certain dollar amount in case a second party does not come through and does not deliver on some of the obligations.

Surety bonds are different than insurance. They provide an important financial and legal protection.  The following includes some types of businesses and jobs that will require to carry surety bonds:

  • Construction contractors/companies
  • Collection agencies
  • Auto dealer
  • Health clubs
  • Travel agencies

That being said, surety bonds can benefit your business if you are required to purchase them. For example, if you are an accounting company, you may want to consider employee theft bonds to secure financial protection in case one of your employees engages in an illegal activity.

The following include some of the different kinds and types of surety bonds:

Commercial Bonds

  • License and Permit Bond
  • Court Bond
  • Customs Bond
  • Commercial Performance Bond
  • Most other Commercial Bonds

Contract Surety Bonds

  • Performance
  • Labor & Material Payment
  • Bid Bond
  • Maintenance Bond
  • Supply Bond
  • Wage & Welfare Bond

Un-categorized Bonds

  • Municipal Permit & License
  • State Permit & License
  • Probate
  • Public Officials Surety
  • Notary Errors & Omissions
  • Employee Dishonesty
  • Janitorial Services

Oil/Gas/Energy Bonds

  • Plugging & Abandonment
  • Right of Way
  • Permit
  • Energy Construction Performance
  • Excise Tax
  • Most any energy related bonds

For more details and additional information regarding surety bonds, please give us a call at 888-725-7776.