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Surety Bonds / Bonds Insurance
Surety bonds agree to uphold – for the benefit of the obligee – the contractual promises (obligations) made by the principal if the principal fails to uphold its promises to the obligee. The contract is formed within surety bonds so as to induce the obligee to contract with the principal, i.e., to demonstrate the credibility of the principal and guarantee performance and completion per the terms of the agreement.
A Surety Bond is a Contract Among at Least Three Parties:
- The principal – the primary party who will be performing a contractual obligation
- The obligee – the party who is the recipient of the obligation, and
- The surety – who ensures that the principal’s obligations will be performed
Quote Liability has a wide selection of Surety Bonds available for your business, including, but not limited to:
- Consumer Deposit Surety Bonds
- Contract Surety Bonds
- Mortgage Broker Surety Bonds
- Vehicle Dealer Surety Bonds
- Fidelity Surety Bond Form
- Janitorial Surety Bond Form
- License Surety Bonds
- Permit Surety Bonds
- Notary Surety Bond Form
- Nationwide Surety Bonds
- Surety Bond Services
- Surety Bond Company
- Top Bonding Company
- Performance Surety Bonds
- Bid Surety Bonds
- Supply Surety Bonds
- Maintenance Surety Bonds
- Subdivision Surety Bonds
- Union Surety Bonds
- Landlord Security Deposit Surety Bonds
- Employee Dishonesty Surety Bond Form
You Can Depend On Quote Liability For Your Surety Bond Needs!
Contained within the contract language of most surety bonds from Quote Liability is the phrase “penal sum”. This surety bond term refers to is a designated amount of money that is the maximum amount that the surety will be required to pay in the event of the surety bond principal’s default. This allows the surety to assess the risk involved in giving the surety bond; the surety bond premium charged is determined accordingly. If a principal defaults and surety bonds turn out to be insolvent, the purpose of the surety bond is rendered nugatory. Thus, the surety on a surety bond is usually a surety bond insurance agency such as Quote Liability whose solvency is verified by private audit, governmental regulation, or both.
The surety bond principal will pay a premium (usually annually) in exchange for the surety bonding company’s financial strength to extend surety bonds credit levels. In the event of a claim, the surety will investigate it. If it turns out to be a valid claim, the surety will pay it and then turn to the principal for reimbursement of the amount paid on the claim and any legal fees incurred. Surety Bonds are agreements subject to the bond form. Surety Bonds are also often used as a generic name for many types of bonds.