What is a surety bond?A surety bond is an agreement under which one party, the surety, guarantees to another party, the obligee, the performance of an obligation by a third party, the principal.
What do surety bonds do?Surety bonds are designed to guarantee performance in the face of a set of particular risks. These risks are unique to the client and therefore require that each surety bond be uniquely tailored to each client. Surety bonds are usually required for monetary compensation for failure to perform specified acts referenced in the bond form that the principal was monetarily responsible for. Surety bonds are usually required by counties, cities, states and the Federal Government for monetary protection from principals in the private sector.
Who are the three parties to a surety bond?A surety bond is a three party contract. The first party, the Obligee is the entity requesting the bond. The second party, the Principal is the entity or person performing the contractual obligations set forth in the surety bond form. The third party, the surety Company who insures the Principal’s obligations will be performed according to the surety bond form and statutes.
What are the 3 most common types of surety bonds?The three most common types of surety bonds are:
- Contract surety bonds; which include bid bonds, performance bonds, and payment bonds.
- Special risk bonds; Surety bonds for the securities industry.
- Commercial Surety Bonds; License & Permit bonds, Performance and Payment Surety bonds, Customs bonds, Tax bonds, and Warehouse bonds. Court bonds include; Judicial bonds, Fiduciary bonds, Public official bonds, and Miscellaneous bonds
Surety Bond UnderwritingISU Jallad Insurance Services offers our surety bond clients the ability to have an expert in the surety bond market to help them navigate the surety bonding process. Our goal is to provide surety bond solutions for you or your business now and where you and your business will be in the future. We have specialized in house expertise in surety bonds and can facilitate all your surety bonding requests for all types of clients, ranging from small, medium and large markets nationwide. We can handle all different sizes of projects and businesses.
We represent many of the top surety bond companies and can handle all your surety bonding needs whether you have good credit, or have been declined due to credit, financials and/or bond type. We look to build long term relationships by providing first class service, ease of doing business, and “creative solutions” for “out of the box” surety bonds coupled with competitive pricing and quality carriers.
We understand that you have put tremendous amounts of time and capital to prepare for a bid on a project and getting bonded is sometimes what separates you from getting the job or not. We can help.