Understanding Surety Bonds
Surety bonds are for agreements made between a third party and a business owner. The nature is very much similar to insurance, wherein the third-party guarantees the business owner to complete the contract that has been agreed to. Surety Bonds basically assure that both parties fulfill an agreement.
A surety bond is a good way to measure risk-management of potential fraud, malfeasance or employee larceny. By minimizing these risks, both parties can be able to maximize liability coverage whenever the said agreement failed to be fulfilled.
Types of Surety Bonds Available
Generally, there is a very broad array of surety bonds available today. Common types of Surety Bonds are:
- Bid, Performance and Payment Bonds
- Supply or Service Contract Bonds
- Subdivision/Site Improvement Bonds
- License & Permits Bonds
- Court Bonds (e.g. Probate, Guardian, Appeal)
Who Requires Surety Bonds?
Various individuals can be able to purchase surety bonds. They are most commonly utilized by brokers, company owners, suppliers, manufacturers, suppliers, investors, contractors and entrepreneurs.
How Insurance Brokers of Maryland can help
Insurance Brokers of Maryland has over 100+ years combined experience helping contractors large and small place the bonds they need. We provide a unique skill set having both underwriting and agency experience, allowing us to handle even the most complex bond situations. We provide expert financial analysis, and will work with you to help you grow your bond program and your business. With access to a large number of surety markets and our extensive industry experience we can find solutions for even the most unique situations. Contact us via email below or give us a call.