At Alternative Insurance Brokers, we understand the importance of getting the correct bond in place to help your business. There are many types of bonds, all different in their own way. For this reason bonds can be complex, and hard to understand if it’s a new concept to you. Read on to find out more about what they are, and how they help.
Who does a surety bond involve?
A bond will involve the following three participants:
(the party who require the bond)
What is a Surety Bond?
Surety Bonds are a contract put in place to ensure that work is done on time, and completed to a required standard. If it is not, the the bond acts as an insurance, and can be claimed upon to help get the work completed to the standard that is needed.
Surety bonds are an insurance for the obligee, as they are the ones who are able to make a claim on them. The obligee is usually a government agency, with the bond in place to protect the government and citizens. For example, when a road is worked on or built, the local council will get a bond in place to make sure that it is completed in time and to a safe standard. If it isn’t, then the money from the bond will go towards making sure that the road is safe.
The part played by the surety is that they back you, the principle, stating if a claim were to arise then you are able to pay out. This is why the underwriting of bonds involve looking thoroughly at your company and company accounts to make sure you have the ability to pay if that is what it comes to. However if the claims cannot be paid by the principle either directly or through court, then it is the surety that will be liable to pay.
Bonds can be used for a wide range of businesses or projects, but a majority of the time they will be related to construction. However, bonds can also be used in finance or for banks.
If you would like to discuss which bond may be best for you, then give us a call on 0800 2218322 today to find out more.
The Surety Bonds we offer
Advance Payment Guarantee
Deferred Payment Guarantee
Rent Deposit Guarantee
Sewer / Water Bond
If you are interested in applying for one of our bonds, we offer options to fill in the form online or an interactive PDF that an be filled in digitally or manually.
Please follow the relevant link below to you. If you chose to download the form, once completed please send to firstname.lastname@example.org and a member of staff will get back to you shortly. If you need any assistance in filling out the form then call us on 0800 2218322 and we will be happy to help you.
General Bond application
Construction Bond application
Want to know more?
If you have any further questions about our Bond Services, or want something that you can’t see, then please get in touch and a member of staff will get back to you shortly.