A surety bond is a promise to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract. The surety bond protects the obligee against losses resulting from the principal's failure to meet the obligation.
The principal will pay a premium (typically annually) in exchange for the bonding company's financial strength to extend surety credit. In the event of a claim, the surety will investigate it. If it turns out to be a valid claim, the surety will pay it and then turn to the principal for reimbursement of the amount paid on the claim and any legal fees incurred.
A performance bond is a surety bond issued by an insurance company to guarantee satisfactory completion of a project by the promoter.
Please call or email Greg Batty with any questions or to obtain the proper application.
844-633-8765