With Armor Insurance Professionals, you’ll no longer have to worry about the performance and integrity of a business. We can provide you with a surety bond to make sure that they’ll comply with your standards.
What is a surety bond and how does it work?
A surety bond is simply a legal agreement that ensures that an individual/company (called the “principal”) will perform their job according to specified terms, regarding the safety and satisfaction of the general public. A surety bond is typically purchased when another individual/company (called the “obligee”) wants to make sure that the general public is protected from the principal’s potential dishonest practices.
To put the surety bond into action, the obligee must make regular payments to the principal, who could use those funds to operate their business. In return, the principal must abide by the agreed terms. However, if the principal fails to meet the terms for any reason, the obligee can make a claim so that the insurance company who provides the surety bond can reimburse the obligee with the money that they lost in their investment. Then, the insurance company will get their money back by obtaining it from the principal.
What are the types of surety bonds?
There are four main types of surety bonds:
Contract Bonds: Also known as construction bonds, contract bonds serve to guarantee that a contractor will fulfill their promise to perform their job according specified terms.
License and Permit Bonds: These bonds are prerequisites to allow businesses to proceed with certain business activities. License and permit bonds may be required by the federal government, the state government, or the municipality.
Court Bonds: Court bonds, also known as judicial bonds, are used to make sure that a fiduciary will perform their job in accordance with the law or court.
Fidelity Bonds: This type of bond protects businesses from losses as a result of employee dishonesty.
How much does a surety bond cost?
Your premium depends on several other factors, such as your:
Bond type and amount
Personal credit score
Keep in mind that with Armor Insurance Professionals, you get to personalize your insurance policies to suit your needs and circumstances. As a brokering agency, we can compare prices from different companies for you at no cost. Need help deciding on the right amount of protection that fits in your budget? Get an online quote now or speak with a friendly agent to get started!