What is a Surety Bond?
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3 سال پیش
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Source:
Source: https://www.jwsuretybonds.com/edu/wha...
What exactly is a surety bond?
It can be confusing at first to figure out how a bond really works -- and who needs to get bonded.
Let’s start with the basics. A surety bond is a legally binding contractual agreement between three parties.
The first party is you, the principal, who needs to obtain a bond.
The obligee is the entity requiring you to get bonded. In most cases the obligee is a government agency.
The third party is the surety company that backs the bond.
The surety bond guarantees that you, as the bonded principal, will fulfill the terms outlined in your bond. You can think of the bond as a kind of insurance for the obligee. It’s also a form of credit to you, as the principal, provided by the surety that backs the bond.
For example, if you’re an auto dealer, your state’s Department of Motor Vehicles will require a bond for your auto dealer license. The auto dealer bond guarantees you’ll act in a lawful manner when selling vehicles to buyers.
If you don’t meet the obligations set in the bond --- like following the law in your car sales activities -- a claim can be filed against your bond. That’s how the claimant can get fair reimbursement for any financial loss.
Unlike insurance claims, where the insurance company covers claim costs, you are financially responsible for any bond claims. (https://bit.ly/3JgZLv1)
So who needs to get a surety bond?
Auto dealers, freight brokers, contractors, mortgage brokers, and many other professionals need a surety bond to get licensed.
Then there are contractors who need contract bonds to bid on and participate in public construction projects.
A third common type of bonds are court bonds, which are required by courts in certain cases.
If you need to get bonded, don't worry. The bonding process doesn't have to be complicated, especially with a bonding partner like JW Surety Bonds.
Simply apply online for an instant FREE bond quote today: https://bit.ly/34MNUWy
Additional resources:
- FREE e-book: "The Consumer's Guide to Surety Bonds": https://bit.ly/3icjAYi
- Surety Bonds 101: https://bit.ly/3JeWPix
- Types of Surety Bonds - Find Yours: https://bit.ly/37z4Lx1
- Frequently Asked Questions: https://bit.ly/3w9K8Sd
- How Much Does a Surety Bond Cost?: https://bit.ly/37mZrww
- Get a real-time surety bond quote in minutes: https://bit.ly/34MNUWy
- How JW Surety Bonds is Different: https://bit.ly/3u14DxW
- How to Choose the Right Bond Agency: https://bit.ly/3q3JTEj
About JW Surety Bonds: We are a family owned and operated agency established in 2003. We started with just two people, and grew to become the largest volume bond producer in the nation with 50+ employees. Since day one, our team focus has been on providing real-time online quotes, an easy process, and the best in claims defense. Learn more about our company: https://bit.ly/3q9s3Qt
What exactly is a surety bond?
It can be confusing at first to figure out how a bond really works -- and who needs to get bonded.
Let’s start with the basics. A surety bond is a legally binding contractual agreement between three parties.
The first party is you, the principal, who needs to obtain a bond.
The obligee is the entity requiring you to get bonded. In most cases the obligee is a government agency.
The third party is the surety company that backs the bond.
The surety bond guarantees that you, as the bonded principal, will fulfill the terms outlined in your bond. You can think of the bond as a kind of insurance for the obligee. It’s also a form of credit to you, as the principal, provided by the surety that backs the bond.
For example, if you’re an auto dealer, your state’s Department of Motor Vehicles will require a bond for your auto dealer license. The auto dealer bond guarantees you’ll act in a lawful manner when selling vehicles to buyers.
If you don’t meet the obligations set in the bond --- like following the law in your car sales activities -- a claim can be filed against your bond. That’s how the claimant can get fair reimbursement for any financial loss.
Unlike insurance claims, where the insurance company covers claim costs, you are financially responsible for any bond claims. (https://bit.ly/3JgZLv1)
So who needs to get a surety bond?
Auto dealers, freight brokers, contractors, mortgage brokers, and many other professionals need a surety bond to get licensed.
Then there are contractors who need contract bonds to bid on and participate in public construction projects.
A third common type of bonds are court bonds, which are required by courts in certain cases.
If you need to get bonded, don't worry. The bonding process doesn't have to be complicated, especially with a bonding partner like JW Surety Bonds.
Simply apply online for an instant FREE bond quote today: https://bit.ly/34MNUWy
Additional resources:
- FREE e-book: "The Consumer's Guide to Surety Bonds": https://bit.ly/3icjAYi
- Surety Bonds 101: https://bit.ly/3JeWPix
- Types of Surety Bonds - Find Yours: https://bit.ly/37z4Lx1
- Frequently Asked Questions: https://bit.ly/3w9K8Sd
- How Much Does a Surety Bond Cost?: https://bit.ly/37mZrww
- Get a real-time surety bond quote in minutes: https://bit.ly/34MNUWy
- How JW Surety Bonds is Different: https://bit.ly/3u14DxW
- How to Choose the Right Bond Agency: https://bit.ly/3q3JTEj
About JW Surety Bonds: We are a family owned and operated agency established in 2003. We started with just two people, and grew to become the largest volume bond producer in the nation with 50+ employees. Since day one, our team focus has been on providing real-time online quotes, an easy process, and the best in claims defense. Learn more about our company: https://bit.ly/3q9s3Qt
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