Surety Bond

What is a Surety Bond?

A surety bond is a three-party agreement wherein the Obligee (owner) requires the Principal (you) to post security (bond obtained from the Surety) to guarantee performance under a contract, court order or license.

What are the different types of Surety Bonds?

Fidelity Bonds

Generally speaking, Fidelity Bonds cover losses due to dishonest acts of a bonded employee. The employees may steal alone or with others. The loss may be money, merchandise or other property. Fidelity Bonds are usually available in a group (blanket) or individual (schedule) form, but the terms and conditions offered may vary.

Judicial Bonds

Judicial bonds are written for parties to lawsuits or other court actions (plaintiffs and defendants)

Fiduciary Bonds

A fiduciary is a person appointed by the court to handle the affairs of persons who are not able to do so themselves. The fiduciary is often called a Guardian or Conservator when the affairs of a minor or an incapacitated person are being handled. An Administrator is a fiduciary who handles the affairs of someone who has died; this person is known as an Executor if specifically named in the will.

License and Permit Bonds

A business takes few actions today without governmental permit or approval. Many of these governmental permits are granted only after the business posts a bond guaranteeing compliance with laws, ordinances, and regulations.

Performance and Federal Bonds

There are as many categories of surety bonding as there are categories of agreements, contracts and situations where people may fail to perform as promised. Some examples of these would be Notary Publics, Process Servers and Defective Title Bonds.