What is a Surety Bond?
Essentially, a surety bond is a sort of insurance that protects the person or company hiring a contractor. The bond guarantees that the contractor will fulfill the duties and responsibilities outlined in their contract. If they fail to do so, the bond provides financial compensation to the person or company that hired the contractor and this bond is obtained from a surety company, who acts as the guarantor in this agreement.
In practical terms, imagine you’re a contractor hired to build a house. If you don’t complete the job as agreed upon, the surety bond acts like a safety net for the person who hired you. They can make a claim against the bond to recover some of the money they’ve lost because of the incomplete work.
To get a surety bond, you, as the contractor, will need to pay a premium to a surety company. The cost of the premium will vary based on factors like the type of work you’re doing, the total cost of the project, and your own financial and professional history. Think of it as a way of reassuring the person or company hiring you that they won’t be left in the lurch if something goes wrong with the project.
Surety Bonds are primarily used to guarantee project performance, but can also be used to protect the general public and environment with License and Permit Bonds, Decommissioning Bonds, Court Bonds, Reclamation Bonds, and more.
If you need a surety bond, contact any Parrot Surety professional to guide you through the surety process and get you your surety bond.
Essentially, a surety bond is a sort of insurance that protects the person or company hiring a contractor. The bond guarantees that the contractor will fulfill the duties and responsibilities outlined in their contract. If they fail to do so, the bond provides financial compensation to the person or company that hired the contractor and this bond is obtained from a surety company, who acts as the guarantor in this agreement.
In practical terms, imagine you’re a contractor hired to build a house. If you don’t complete the job as agreed upon, the surety bond acts like a safety net for the person who hired you. They can make a claim against the bond to recover some of the money they’ve lost because of the incomplete work.
To get a surety bond, you, as the contractor, will need to pay a premium to a surety company. The cost of the premium will vary based on factors like the type of work you’re doing, the total cost of the project, and your own financial and professional history. Think of it as a way of reassuring the person or company hiring you that they won’t be left in the lurch if something goes wrong with the project.
Surety Bonds are primarily used to guarantee project performance, but can also be used to protect the general public and environment with License and Permit Bonds, Decommissioning Bonds, Court Bonds, Reclamation Bonds, and more.
If you need a surety bond, contact any Parrot Surety professional to guide you through the surety process and get you your surety bond.
