Bonds differ from insurance policies since they are an agreement involving three parties, rather than two. Often, these three parties agree to a guarantee of performance of some kind. If the first party, known as the principal, fails to perform, the second party, or oblige, is protected by a third party surety carrier.
There are several bonds types, all designed for very specific scenarios. There are Surety bonds such as a payment bond, a maintenance bond, a judicial bond, or there are Fidelity bonds. However, the most commonly purchased bonds are Contract bonds, License and Permit bonds and Bid bonds
First, determine the type of bond and amount required for your line of business or project. As an independent agency, we can rate bonds from multiple carriers to save you time and money. You also have the advantage of working with an experienced agent that can provide recommendations and help you make an informed decision regarding your purchase.