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About Bonds [keep but hide for now]




Bonding comes in two forms: Surety and Fidelity. Our bond department provides clients with the bond requirements they need to bid public work and protect their businesses against employee dishonesty. 

Basic Information about Surety Bonds

A surety (it’s pronounced like it has an “h” in it – Shurety) bond is a written guarantee that someone will perform according to a contract. While it is often underwritten by an insurance company, it is NOT insurance, it is a credit arrangement. In laymen’s terms, it is similar to being a co-signor for a loan at the bank for a son or daughter on their first car loan. While you might be willing to co-sign for the loan, you do not expect or want to make those car payments – that is their responsibility!

The key aspects of a surety bond include: 

     1.  The bond guarantees what is in the agreement or contract. That underlying document can be a construction permit from a town, a contract agreement to construct a building, a will or court order, etc. 

     2.  There is a qualification process to obtain the bond and that generally means a credit check on the entity applying for the bond and a review of the agreement.

     3.  The more complex the underlying agreement, the more important it is to provide a complete application to show that you can perform your obligation. A permit bond is much easier to obtain than a bond to construct a $2,000,000 building project.

 4.  A professional surety agent will be invaluable to assisting you through the bonding process.

Some of the more typical types of bonds are:

Contract Bonds – Bid, Performance and Payment, Maintenance Bonds

License & Permit Bonds – One of the more easily obtainable bonds. 

Court Bonds – 

Judicial bonds – needed for lawsuits by both plaintiffs and defendants

Probate bonds – needed by Executors, Administrators, Guardians, etc. 




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