How Do Surety Bonds Work?
The whole purpose of surety bonds is to make sure that if someone is hired to do work, they complete it. A surety bond offers safety for the group paying for the service. If something gets in the way and the work isn’t done as specified in the contract, the surety bond provider will pay those costs upfront. They will then collect the costs from the group that was responsible for providing the work.
There are two main types of surety bonds available:
- Contract Surety
- Commercial Surety
Contract surety is often used in the construction industry to protect the bond’s owner from financial loss if their contractor doesn’t fulfill a contract. A commercial surety is used as an agreement that the business or individual providing services will follow all legal obligations that are required in a contract.
Get Help Finding What You Need
There are many types of surety bonds available, and it can be confusing navigating your options, especially if you’re new to qualify for one. Our team takes time to get to know the nature of your business and then helps you start the process. Talk to us to learn more.