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In simple terms, a surety bond is a third party financial and/or performance guarantee of a contract or other legal obligation between two parties.

While there are hundreds of bond types, the most common types are bid bonds, performance bonds, payment bonds, license bonds, estate administrator bonds, and appeal bonds.

The three parties to any surety obligation are:
1) the Surety who guarantees the obligation
2) the Principal who is the surety’s client and must perform the obligation
3) the Obligee to whom the bond benefits if the Principal fails to fulfill their obligation.

There are three broad market segments in the surety industry that serve different types of clients. These segments are construction companies, commercial or non-construction companies, and attorneys whose clients have various types of bond needs.

Contact me to discuss more about Surety Bonds.

Note: This communication is for informational purposes only, and is not intended to offer legal, tax, or client-specific risk management advice. Information in this communication is not meant to describe specific coverages that may be advisable or available to you or your company, or to interpret specific coverages that may already be in place. General insurance descriptions in this communication do not include complete insurance policy definitions, terms, and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysis. View our privacy notice.