How Does A Surety Bond Work? – Surety Bond Basics
Learn the surety bond basics. A surety bond is a third-party guarantee. It is a promise by a surety or guarantor to pay the obligee (Who is requiring the bond) or the principal’s client a certain penal amount if the principal (Who is applying for the bond) fails to meet some obligation, such as fulfilling the terms of a contract. So, how does a surety bond work? The surety bond works by protecting the obligee or principal’s client against losses resulting from the principal’s failure to meet the obligation. Note that a surety bond does not protect the principal.
What Types of Surety Bonds Does Absolute Surety Sell?
Absolute Surety, LLC, sells thousands of types of surety bonds and fidelity bonds.
How Do Surety Bonds Work?
Unlike insurance, surety bonds protect the client, not the business owner.
This party is the recipient of the obligation. The one who is requiring the bond.
This party has the responsibility of performing the contractual obligation of the bond.
This is the group or entity that insures the principal will perform the task for the obligee.
How Does Absolute Surety Get You the Best Bonds and Rates?
There are many reasons bonds from Absolute Surety come with the best prices and service. Learn how we make surety bonds work for you:
- 100% free quotes provided
- Only “A” rated insurance companies used for better quality products
- No application or credit report fees
- In-house underwriting on many bonds offers faster turnaround
- Financing options available for some bonds
- No processing fees