There is an element of trust involved in many business transactions, and providing an extra guarantee can often make the difference between being awarded a contract or losing a business opportunity. If there are any doubts about one party’s ability to fulfill the requirements of a contract, a surety bond can give everyone involved peace of mind.
At Burton & Company, we can help you arrange a surety bond as part of a contract requirement or business license.
The Three Parties of Surety bonds involve the following parties:
- The Principal (you or your business as the party purchasing the bond)
- The Surety (your insurer)
- The Obligee (the customer or entity that requires the bond)
If the principal fails to complete the work as contracted, the obligee may file a claim for payment from the bond, which the principal is then required to pay back to the surety.
Types Of Surety Bonds
We offer a broad range of surety bonds. Here’s a look at some of the most common types.
Contract Performance Bond
In construction and real estate development, performance bonds are common to provide reassurance to all parties involved. Many owners and investors will require developers to ensure the project managers and contractors they work with secure a performance bond to guarantee they will meet their contract’s obligations.
Popular contract performance bond types include:
- Performance bonds guaranteeing a contract will be completed according to the terms and conditions
- Payment bonds guaranteeing subcontractors, laborers and material suppliers will get paid
- Bid bonds guaranteeing the project owner that a bidder will enter into a contract to complete work if they are chosen
License And Permit Bond
You may be required to get this type of bond so your business can be properly licensed in your city, county or state. These are aimed at ensuring work carried out by your business will comply with specific municipal and state laws.
Types of license and permit bonds include:
- Plumber’s license bond
- Electrician’s license bond
- General contractor’s license bond
- HVAC contractor’s license bond
- Sign permit bond
- Driveway permit bond
If you are appointed as a conservator or must perform a similar role, it may be necessary to obtain a probate bond prior to executing your duties to guarantee faithful performance of your duties and honest accounting.
Popular types of probate bonds include:
- Conservator bonds
- Trustee bonds
- Administrator bonds
- Guardian bonds
- Executor bonds
Public Officials Bond
In many cases, a public official who is responsible for handling or managing public funds must require a bond guaranteeing that they will honestly and faithfully perform their duties while they are in office. Some of the positions that may require public official bonding include:
- Tax collectors
Other Types Of Surety Bonds
- Utility bonds
- Tax bonds
- Union wage and welfare bonds
- Lost security and lost instrument bonds
Applying For A Surety Bond
Burton & Company will guide you through the process of applying for a surety bond. Here’s what is involved.
- Evaluation — We’ll let you know which financial documents you need to present to demonstrate your creditworthiness and the details we require related to the project covered by the bond.
- Underwriting — We’ll assess the risk to bond you and offer s formal agreement if the bond is approved.
- Bond issuance — Finally, the surety bond will be issued for you as the principal to sign and deliver to the party that requested it.
Contact Burton & Company To Discuss Your Surety Bond Needs
Surety bonds can be complicated, but our team can guide you through the process and make sure you understand all the fine points. Request a quote online today or get in touch with us at (888) 652-1325 to discuss how we can help with all your surety bond needs.