Surety bonds are like a reference letter from a reliable source that lets your customers, suppliers, or partners know you have the capacity to complete a project or deliver goods as specified in a contract. The surety issuer takes on the liability of any default or failure on your part. If you fail to live up to the terms of the contract, the surety provides financial compensation to your partner.
Surety bonds are a three-party agreement between you (the purchaser of the bond), the surety company that promises to be liable for the contract if you default, and your customer or project owner who requires the bond. You are considered the principal in this contract. If you do not live up to the terms of the contract, the project owner (known as the obligee) turns to the surety to collect damages. In the event of a payout, you are responsible for paying the funds back to the surety.
Contract surety bonds are a common requirement in the construction industry. We offer bid, payment, performance, supply and maintenance bonds for mid to large contractors, including:
Commercial Surety bonds may be required by local and state law to comply with state or federal regulations. We offer a variety of bonds to for mid to large companies:
