Surety Bonds
Surety Bonds
There’s a common misconception that surety bonds are only for construction companies. Not so! While the construction industry uses significant surety credit, many, if not most, companies will need a surety bond at some time. Boizelle Insurance Partnership agents and our carriers have extensive experience in handling the specific surety needs of a wide variety of businesses.
A surety bond is somewhat like a professional co-signer. The bond company is basically promising that you will follow the rules listed on the bond and will not cause financial harm. The contract is among three parties.
- The obligee – the party who is the recipient of an obligation
- The principal – the primary party who will be performing the contractual obligation
- The surety – who assures the oblige that the principal can perform the task
If you do not follow the obligations stated on the bond then a claim can be filed on your bond. The bond company will investigate and pay out if they find you at fault. Unlike an insurance policy, if the surety company pays out on the bond, you are obligated to pay the surety company back.
There are two main categories of bond types: Contract Bonds and Commercial Bonds.
Bonds often needed by contractors:
- Bid bonds
- Labor and material bonds
- License and permit bonds
- Mechanic’s lien – bond to discharge
- Performance bonds
- Supply bonds
- Utility payment bonds
Commercial bonds:
- Bid, Performance and Payment, and Supply
- Court Customs
- License & Permit
- Notary
- Probate
- Regulatory and tax
Whether you’re an individual with a business seeking a particular type of bond, or run a business with a variety of bonding requirements, Boizelle Insurance Partnership has many carriers that can provide a surety program that suits your needs with pre-approval and quick bonding solutions. Give us a call today. We’ll work with you to find the best bond solution to meet your company’s needs.