A surety bond is a contract that ensures specific obligations are met. These bonds are often required for contractors working on government contracts. They are performance-based. A surety bond is a guarantee between three parties. The parties in a surety bond are: The Principal: The individual who is required to
If you are in business in any of a wide range of industries, surety bonds are likely to be part of your business insurance package. These bonds are used in a variety of business situations in which an additional guarantee for the quality of service or products is required. The
Surety bonds are a useful service, but not the same thing as professional liability insurance, also known as errors and omissions (E&O) insurance. You may need both surety bonds and professional liability insurance to safeguard your business. What Are Surety Bonds? A surety bond is a contract between three or
