Surety Bonds 101
Do you know what a surety bond is? Many people are unaware, so we wanted to be sure to draft a blog post that breaks down a little more info on what it is, and why it is very important.
A surety bond is essentially a legally binding agreement between the principle (individual in need of the bond), an obligee (individual requiring the bond) along with the actual insurance company involved in the transaction. You could also think of a surety bond as the combination of insurance and credit. It is widely used in the construction and automotive fields.
The obligee can make a claim in the event that the principle does not hold up their end of an agreed upon contract. This allows them to recover losses and ensure that they are not taken advantage in costly and fast moving business deals.
If claims do occur it is critical to find a credible surety professional to represent you and be your advocate in the claims process. Their goal is to ensure that you are not taken advantage of, and that all filed claims are valid and have merit! There are a number of reasons that you need to be sure to build relationships and work with a solid and respected surety professional. The first reason is the fact that they will help you through the entire process, which can be very cumbersome and difficult. They also ensure that illegitimate claims go unpaid, along with legitimate claims being amicably resolved with reduced or no payout when possible.