Skip to the content

Surety Bonds

Hand Signing a Surety Bond

Surety Bond is a three-party agreement whereby the surety guarantees to the obligee (the project owner) that the principal (the contractor) is capable of performing the contract in accordance with the contract documents. Performance of the contract, which is the subject of the bond, determines the rights and obligations of the surety and the obligee.

Here are the eight different families of surety bonds:

  1. Fidelity Bonds
  2. Public Official Bonds
  3. Judicial Bonds
  4. Fiduciary Bonds
  5. License and Permit Bonds
  6. Contract Bonds (Bid and Performance Bonds)
  7. Miscellaneous and Federal Bonds
  8. Notary Bonds

Surety Bonds are often confused with insurance policies, but it’s important to remember that they are a completely separate product. Whereas an insurance policy would likely protect a contractor’s interests, Surety Bonds protect the customer’s interests.  Applicants should know their required bond amount as determined by their applicable license or registration. These bonds can be purchased as 1, 2 or 3-year term bonds. 

Bailout Insurance Group, LLC offers free, comparative quotes on Surety Bonds from multiple insurance carriers so you can get the best possible rate.

Want to see how much we can save you? Just request a quote to find out.