Not a traditional insurance product, Surety Bonds provide a financial guarantee that a contractor or business will fulfill its contractual or legal obligations. Commonly required for construction projects, government permits, and commercial agreements, the bond protects the obligee if the principal fails to perform as agreed. In such cases, the surety company may answer for the loss, subject to the bond’s terms and conditions.
Parties
Principal
The contractor or party required to secure the bond and perform the obligation covered by the bond.
Surety
The bonding company that issues the bond and guarantees the Principal’s performance or compliance.
Obligee
The party that requires the bond and is protected by it.
Requirements
Simple steps and what to prepare for better protection.
Bond Application Form
Copy of the Contract Stipulating the Bond Requirement
Financial Statement of Principal
Valied government-issued ID of Principal / Obligee
Submission of additional documents / information as deemed necessary by the bonding company
