What is a surety bond?

A surety bond is an agreement between three parties: the principal, surety, and obligee. The agreement legally binds together a principal who needs the bond, an obligee who requires the bond and a surety company that sells the bond. The bond guarantees the principal will act in accordance with certain laws. If the principal fails to perform in this manner, the bond will cover resulting damages or losses.

What is a surety bond used for?

Surety bonds protect consumers and government entities from fraud and malpractice.

4 Main Types of Surety Bonds:

  • License & Permit Bonds
  • Construction Bonds
  • Commercial Bonds
  • Court Bonds

There are many more type of surety bonds, but it is important for you to understand which one may be right for you. Contact the experts at Concrete Insurance for more information.

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