• July 8, 2016

Surety Bonds 101

Surety Bonds 101

Surety Bonds 101 1024 460 Patrick J. Thomas Agency

WHAT IS SURETY?

Surety is a special line of insurance that is used to guarantee the performance of an obligation of another party. Surety bonds are used to provide monetary compensation in case the principal fails to perform the promised obligation. Unlike traditional insurance coverage, the risk remains with the Principal, but the protection is for the obligee.

HOW DOES A SURETY BOND WORK?

Surety bonds are three party agreements in which one party (Surety) guarantees or promises a second party (Obligee) that a third party (Principal) will successfully perform said duties. When a court requires a bond it is expecting that, the Principal will undertake the obligation of the bond, the obligee will receive the benefit of the bond and the Surety will guarantee the obligation is performed.

HOW CAN I GET A BOND OR INSURANCE APPLICATION?

Contact us to apply or learn more about bond insurance. In your message, please provide a description of the type of bond or insurance you are looking for along with contact information and the best time to reach you.

 

Disclaimer: this is for informational purposes only and is not intended to be legal advice. If you need legal counsel, please contact an attorney directly.