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Surety Bonds
By: Jenny Sexton, Fri Jul 2nd, 2010
SURETY BONDS
First of all, surety bonds are not an insurance policy. Surety bonds act, instead, as a written agreement between the surety, agency, and the obligee, the surety holder or commercial business and serves as an assurance or guarantee to answer for any default incurred by the principal, the client of the commercial endeavor. Unquestionably, surety bonds are complicated and legally binding, so when it comes time to secure a surety bond for your business, working with an experienced surety agent is very important.
Surety bonds then fall into 2 categories: contract and commercial. Contract surety bonds primarily address the construction businesses and are divided in a number of sub-categories. Contract bonds include bid bonds, performance bonds, payment bonds, maintenance bonds, and sub-division bonds. Furthermore, commercial bonds act to guarantee performance or an obligation laid out in the bond itself. These include services required by state or local regulations to hold a surety bond, such as employment agencies, health spas, and liquor sales. Judicial bonds are surety bonds required by the court for those acting as administrators, executors, and guardians; all services where one person acts on behalf of another. Public officials bonds are for, well, public officials. Federal bonds cover Medicare and Medicaid providers, sheriffs, judges, and notaries. Finally, there are miscellaneous bonds to cover surety needs of a variety of workers and services not mentioned above, yet needing benefit of a surety bond.
For those requiring surety bonds, it is vital to work with a qualified agent, one with the resources and knowledge to insure you get the type of bond you need at competitive rates. It is important to mention here that there are bond services for those companies experiencing challenged credit. Surety agents understand that with today’s economic climate, your business may need special consideration in order to continue doing business.
Surety 1, Surety Solutions Insurance Services, Inc. has been serving the many industries with bonding requirements for the last 7 years. Surety 1 has an experience and friendly staff prepared to answer any concerns and questions you may have. They provide an easy and quick online application; approval takes about 2 business days. Surety 1 also provides an online chat as well as convenient telephone assistance. Simply log on or call for a surety bond quote. Rates will vary with individual clients, credit rating, and specific industry. Generally, rates are.75%to3% of the bond amount.
AUTHOR INFO
Surety 1 offers fast, friendly service, knowledgeable staff and competitive rates for surety bonds. Experienced, friendly agents can help with surety bond quotes for your bonding needs.