A bond is a legally enforceable contract between two or more parties whereby a payment of a specific maximum amount is guaranteed.
The parties to a bond are:
The Obligee – the party who is the recipient of an obligation
The Principal – the primary party who will perform the contractual obligation
The Surety – the entity that assures the oblige that the principal can perform the task.
If a bond is called, meaning a claim is filed, the Principal has to repay the Surety for the claim. Therefore, bonds are primarily underwritten off of the Principal’s credit score and bond experience.
Types of bonds that we frequently place for our clients include:
- Performance and Payment Bonds
- Bid Bonds
- License Bonds
- Employee Retirement Income Security Act Bonds
- Broker Bonds
Court Bonds & Probate Bonds
- Administrator Bonds
- Executor Bonds
- Conservator Bonds
- Guardianship Bonds
- Trustee Bonds