What Is a Bond? Not Business Insurance!
In simple terms, a surety bond is an agreement between three parties, while a traditional insurance policy from an insurance company is a two-party agreement. A surety agreement involves the Principal, the Surety, and the Obligee. In the agreement, you (the business owner) are the Principal and the Obligee is your client.
Get a QuoteWhat Are the Benefits of Being Bonded?
Being bonded with a surety bond gives contractors the ability to bid on larger projects. This is how surety bonds work: the Bonding process is basically a credit check, where the surety shows confidence in the bonded business by financially guaranteeing their ability to complete the project as agreed. Bonding company’s don’t like covering losses, so if there is any chance that the company is over its head, chances are they won’t get the bond to bid on the project.
A bonded business can obtain unbiased criticism from a credit professional and seek advice in underwriting projects.
Bonded Protects.
Some types of surety bonds we handle include, but are not limited to, the following:
- Contract performance bonds and othe contract bonds
- Bid bonds
- Maintenance bonds
- Payment bonds
- Supply bonds
- License and permit bonds
- Miscellaneous bonds
Breaking down a Surety Bond.
Nation West Surety Department works with a select group of surety underwriters for surety bonds. The three most common contract surety bonds secured by surety are:
- Project security for construction contracts
- Performance security for service contracts
- P3 contracts
If you have any additional questions about Bonding or commercial surety bonds, don’t hesitate to contact us!
How to get a Surety Bond?
Contact us today, and we can answer any questions you have about Surety.
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