Bonds

 

bondsA surety bond is an agreement where the surety (insurance company) guarantees to another party called the obligee, the performance of a third party known as the principal. A common type of bond is a contractor’s performance bond. The surety company guarantees that the contractor will perform the duties promised in their bid. If the contractor does not fulfill their obligations, the surety will pay the obligee so they can hire another contractor to complete the job.

Other types of bond include…

  • Fiduciary

     

  • Notary public

     

  • Public official

     

  • License and permit

     

  • Miscellaneous such as lost titles