A bond is a contract between you (The Principal) and the Surety (the Insurance Company or issuer of the bond) and the Obligee (the entity requiring the bond / the person who needs the guarantee that you will do what you said you would do). The Surety financially guarantees to the Obligee that you will act in accordance with the terms of the bond. In that regard a bond is like a line of credit and the rates are, in part, determined by your credit score. When a bond pays out the Surety (Insurance Company) expect reimbursement. A bond safeguards against defaults in both performance and payment by a principal. To obtain this safeguard you (The Principal) pays a premium to the Surety.
Being bonded gives issuers the ability to leverage business growth. With the increased stature of having the insurer’s credit rating, a business can feel safer in taking risks to improve and grow the business. This is especially true in the construction, janitorial and financial industries.
A bonded business can obtain unbiased criticism from a credit professional and seek advice in underwriting projects.
Some bonds we write include, but are not limited to, the following:
We only write with companies have an A rating or higher by AM Best, so you can be sure your bond company will be there to respond when you need them!