Know about the definition of Surety Bond and the Parties involved along with their roles. Be enlightened with the different types of a Surety Bond as well.

1. www.suretybondauthority.com
800-333-7800

2. sur•e•ty bond
: is a promise by a surety that a specific task is
completed to the terms of a contract or in
line with laws and regulations.
[shoo r-i-tee, shoo r-tee, shur-i-tee, shur-tee]
: it guarantees that a given task is fulfilled.
: it protects consumers and hiring parties
against any form of abuse, fraud, deception,
sudden bankruptcies, and penalties.

3. Who are the
parties involved
in obtaining a
surety bond?

4. What makes surety bonds unique is that
they always have 3 Parties, specifically:
ObligeePRINCIPAL surety

5. 1st Party: The Principal
Is the individual or business
entity that purchases the
bond and is guaranteeing
to fulfill a specific
contractual task.
Usually, the Principal must
perform a task OR refrain
from doing a certain
activity.

6. 2nd Party: The Obligee
Is the person or company
requiring the bond. It is
also the entity that is
protected by the bond.
Often, it is a government
agency that requires a
Principal to secure a surety
bond.

7. 3rd Party: The Surety
Issues and backs the bond
for the principal and
guaranteeing
indemnification to the
obligee if a claim is made.
A Surety Company is
essentially extending a line
of credit to the Principal in
case they fail to perform as
expected.

8. What are the
different types
of Surety Bonds?

9. There are thousands of different types of Surety Bonds. Broadly,
Surety Bonds fit into these 6 categories;
1. Construction Bonds (aka Contract Bonds)
Guarantees that an entity awarded a contract will meet its
obligations under that contract. Included in this group are bid
bonds, performance bonds, payment bonds, maintenance bonds
and supply bonds.
2. Subdivision Bonds
Guarantees that developers/builders will make certain
improvements in accordance with local, state and federal
guidelines/laws.

10. There are thousands of different types of Surety Bonds. Broadly,
Surety Bonds fit into these 6 categories;
3. Commercial Surety Bonds
Includes many different business obligations which require
surety bonds. Commercial Surety Bonds include all non-contract
surety bonds, including numerous types of license and permit,
miscellaneous and court bonds.
4. License & Permit Bonds
Guarantees that individuals that have been granted a
license/permit to operate a particular type of business that they
will meet the obligations under that license/permit.

11. There are thousands of different types of Surety Bonds. Broadly,
Surety Bonds fit into these 6 categories;
5. Miscellaneous Bonds
Includes a variety of miscellaneous non-classifiable obligations.
This includes a large number of bonds that don’t comfortably fit
into the other categories.
6. Court Bonds
Guarantees that an individual will comply with the
terms/obligations of the court. This includes Fiduciary Bonds
(such as trustee bonds and probate bonds) and Judicial Bonds
(such as appeal bonds and bail bonds).

12. How Do You Choose
The Correct Surety
Bond Company?

13. As a rule of thumb, NOT
ALL Surety Bond
companies provide the
same level of service or
products to their clients.
Before applying to any
Surety Company, choose
a firm that you are
comfortable working
with or those you are
sure would be able to
meet your needs.

14. Visit www.suretybondauthority.com
"What are the types of Surety Bond"
"What if a claim is made on a Surety Bond?“
"How much does a Surety Bond cost?"
“What is the Process of getting a Surety Bond“?
"How long will it take for a surety bond application to be approved?"
To know more about the following topics…