Surety Bonds for Contractors, Businesses, and Licensed Professionals.
A surety bond is a legally binding guarantee that your business will fulfill its obligations — and many contracts, licenses, and permits require one before work can begin. Saint Moore Insurance Agency helps contractors and businesses find the right surety bond for their specific requirement.
What Are Surety Bonds?
A surety bond is a three-party agreement between the principal (the business or contractor purchasing the bond), the obligee (the party requiring the bond, such as a government agency, project owner, or client), and the surety (the insurance or bonding company that backs the guarantee). If the principal fails to fulfill their contractual or legal obligations, the surety steps in to compensate the obligee — up to the bond amount. Unlike insurance, surety bonds are typically expected to be repaid by the principal if a claim is paid.
There are several common types of surety bonds. Performance bonds and bid bonds are commonly required on construction and government contracts to guarantee that the contractor will complete the work as agreed. License and permit bonds are required by many state and local licensing agencies as a condition of holding a business license or contractor's license. Payment bonds guarantee that subcontractors and suppliers will be paid on a project. Fidelity bonds protect businesses from employee dishonesty or theft.
Surety bond requirements vary by industry, state, and contract type. The bond amount required, the underwriting criteria, and the cost (called the bond premium) all depend on the specific bond type and the financial strength of the principal. If your business needs a contractor bond, performance bond, bid bond, or license and permit bond, contact a Saint Moore Insurance Agency agent to find the right bonding solution.
