What is a bond?
In the context of surety bonding, a bond is a financial agreement that guarantees that a specific obligation will be fulfilled. Here are the key types of bonds commonly used:
Surety Bond: A contract among at least three parties—the obligee (the party who is the recipient of an obligation), the principal (the primary party who will perform the contractual obligation), and the surety (the party that assures the obligee that the principal can perform the task). Surety bonds are often used in construction and by government contractors.
Performance Bond: A surety bond issued to ensure a project's completion according to the contract's terms. It protects the client from losses if the contractor fails to deliver as promised.
Payment Bond: This bond guarantees that the contractor will pay its subcontractors, laborers, and suppliers. It is often required alongside performance bonds on construction projects.
Bid Bond: A type of surety bond that ensures that the bidder will enter into the contract and furnish the required performance and payment bonds if awarded the job.
To start your bond qualification process, complete the form below or call Mike Fusco at 858-384-1507.
Fidelity Bond: This insurance protection protects policyholders from losses incurred due to fraudulent acts by specified individuals. Businesses often use these to protect against employee theft or dishonesty.
License and Permit Bond: These are required by specific industries or government agencies to ensure businesses comply with regulations and laws.
Bonds provide financial protection and reassurance to the party requesting the bond, ensuring that the principal will meet contractual and legal obligations.
To start your bond qualification process, complete the form above or call Mike Fusco at 858-384-1507.