Surety Contract Bonds
Contract Bonds are a great way to make sure you get what you pay for! Or a great way to light a fire under anyone who needs to fulfill an obligation – making sure your work is done right and done on time.
Often times policy writers will require financial statements from a Certified Public Accountant in order to provide this bond. At Insurance Incorporated we have the ability to use your personal credit score to save you money. Now you can get the backing you need without having to pay huge costs to a CPA – couple that with our competitive pricing structure and you will save money and still be protected.
So what is a surety (or contract) bond? It’s a contract focusing on three parties: the obligee (or the person who will receive the product/service), the principal (also known as the person who will perform the obligation), and the surety (the person who keeps everyone in line and assures the principal will perform his duty to the obligee). Principals usually pay annual fees to the surety company in order to look more financially sound (just in case anything happens!) to those who may need their product or service.
Why do you need it? For safety of course – to guarantee your customers get what they were promised. Many different types of businesses and people use this practice every day. In the public domain contract bonds are used to guarantee that officials do their jobs honestly and that they use our money the way their constituents want it to be used.
Contractors are common principals in today’s surety bond market. The homeowner (or owner of whatever project is being completed) often uses a surety bond to keep the contractor true to his word – we’ve all heard about bad contractors and so, you can bet, have the people who have taken out contract bonds to make sure their general contractor does things such as: stick to their agreed upon plan and perform any follow up repair work.
Those are just two examples of contract bonds at work; there are several different kinds of contract bonds – often tailored to meet the specific needs of people and businesses. There are surety bonds to make sure businesses don’t pollute, to make sure employees don’t steal from their companies, there’s a surety bond for just about anything. If there is something that needs to be done, you can bet that there is a surety bond willing to back it up. It’s a great resource and a great way to gain peace of mind in your everyday business interactions.
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