Surety Bonds
Surety bonds are a type of bond that involve a promise to pay a party (known as the obligee) a set amount in the event that a second party (known as the principal) fails to meet a specific obligation, such as the fulfilling of the terms of a contract. Surety bonds serve to protect the obliged party against losses that result from the failure of the principal to meet their obligation. The party that assumes the risk in the case of surety bonds is known as the surety.
Contract Bonds
If you are a contractor that does work in the public sector, then Contract Bonds are essential to your business. There are several different types of bonds that our professionals can help you with:
Bid Bond guarantees that the contractor, if awarded the job, will enter into a contract with the owner and furnish the required performance and payment bonds.
Performance Bond guarantees the faithful performance of the terms and conditions of the written contract.
Payment Bond protect subcontractors and suppliers by guaranteeing that all claimants will be paid for labor and materials supplied to the contractor for use on the bonded job.
Maintenance Bond guarantees that for a stated period, usually one year, no defective workmanship or material will appear in the completed project.
Fidelity Bonds
Fidelity bonds are a related concept and are also known as employee dishonesty coverage and serve to cover theft of an employer’s property by the company’s own employees. Though fidelity bonds are known as bonds, the coverage they supply functions more accurately as a traditional insurance policy rather than a surety bond.
Fidelity bonds are insurance policies that protect against the losses of company monies, securities, or other property from employees who have manifested intent to cause losses to the company. Fidelity bonds can be taken out to protect company assets from a variety of crime insurance policies, such as burglary, fire, general theft, computer theft, disappearance, fraud, forgery, or a broad variety of other charges.
