What is a Surety Bond?
The two most common types of surety bonds include:
Bonds required of individuals or businesses by the government, legislation or by other entities. Printmybond.com provides the following types of commercial surety bonds.
License and permit bonds: required by state, municipal or federal ordinance or regulation. These bonds may be required as a condition for engaging in a particular business or exercising a particular privilege. Examples include performance and payment bonds, customs bonds, tax bonds and warehouse bonds.
Court bonds, including:
Judicial bonds, required of either a plaintiff or defendant in judicial proceedings, to reserve the rights of the opposing litigant or other interested parties.
Fiduciary bonds, required of those who administer a trust under court supervision.
Public official bonds: required by statute for certain holders of public office, to protect the public from malfeasance by an official or from an official's failure to faithfully perform duties.
Miscellaneous bonds: do not fit into any of the other categories above.
Bonds that the government or an owner of a construction project may require a contractor to obtain. There are three types of contract surety bonds:
Bid bond - Affords protection to a project owner (obligee) in the event a successful bidder will not enter a contract and will not provide the required surety bonds or other security.
Performance bond - Provides protection to the obligee if the contractor defaults on its obligations under the bonded contract.
Payment bond - Guarantees the Contractor will pay subcontractor, labor and material bills associated with a bonded construction project.
For all of your Contract Surety Needs please Contact: Michael@nationalsurety.com