Google+ Profile


Friday, July 1, 2022

Surety Bonds for Your Business Protection

Professionally, not producing a promised product or completing a project could get you in a lot of trouble. 

Protect your reputation and company name by purchasing a surety business bond from an independent agent.  This article is an excerpt from Trusted Choice.  The full article may be viewed here:

Who Needs Surety Bonds?

  • Automotive dealers
  • Construction companies
  • Independent contractors
  • Collection agencies
  • Health clubs
  • Auctioneers
  • Medical equipment providers
  • Travel agencies
  • Notaries

What Is a Surety Bond?

Many people think of surety bonds as "surety insurance." But they are not actually a form of insurance. Think of a surety bond as a line of credit. 

If you can’t complete a project, the project owner can then tap into that line of credit to finish the project as necessary. Surety business bonds are a three-party agreement. The three parties involved include:

  • The surety company supplying the bond
  • The obligee, who is the project owner
  • The principal, which is the contractor, organization or employer providing the work

Before the contractor can begin the job, the project owner may require a surety business bond from a surety company. Some projects will require a surety bond and others may not. 

Types of Surety Business Bonds

Although surety bonds are common in the construction/contracting field, there are many types of bonds that serve many different purposes.

  • License and permit bonds: The obligee, which is often a government agency, requires a bond from the principal. The bond states that all codes and regulations will be followed. For example, a plumber may be required to obtain a license before beginning work. To get a plumber license, you must first secure a license bond, agreeing to adhere to city plumbing code.
  • Public official bond: This bond states that elected or appointed officials will perform the duties they are given. Typical bonded positions include notaries, judges, and treasurers.
  • Probate and other court bonds: If you’re given a certain responsibility as a fiduciary or trustee, a probate bond guarantees you perform honestly and faithfully. Other court bonds include:
    • Administrator
    • Executor
    • Conservator
    • Injunction
    • Release of lien
  • Miscellaneous bonds: These are complicated bonds requiring an experienced underwriter, since most involve large risk obligations. These include several types of bonds, including:
    • Utility payment guarantees
    • Union wage and welfare
  • Contract performance bond: This bond guarantees that you will follow all terms and conditions set forth by the contract. Many require advance notice. Types of contract performance bonds include:
    • Bid bonds
    • Performance bonds
    • Payment bonds

Benefits of Surety Bonds

If you aren’t required to purchase a surety business bond, why would you? There are multiple ways surety bonds can benefit both parties. As the principal, obtaining a surety bond prior to working with a new project owner displays business integrity and financial stability. 

To get a surety bond, principals must apply and meet certain standards set by a surety company. Being rewarded with a surety bond from a top quality surety company is a testament to your business strength.

For a project owner, surety bonds can be a lifesaver. Even if a terrible tragedy prevents a principal from fulfilling a contract, the project must still be completed. Working with a principal that possesses a surety bond can provide peace of mind that, no matter what, your job will get done.

To help you through the maze of coverages, carriers, premiums, and find ways to save money on your insurance, contact your Trusted Choice agent, SouthGroup-Gulf Coast , SERVICE TEAM: Angelyn Treutel Zeringue, Tammy Garfield, Tammy Hogue, Denise Russell, Melissa Moran, Alex Treutel, Mark Strickland,  Anne Gillam, Michael Scardino, Joey Eagle, Cody Barnes, Wendy Butler and Melinda Teaford at SouthGroup Gulf Coast. You can reach us by snail-mail: 412 Hwy 90, Suite 6, Bay St Louis MS 39520 or 2505 Pass Road, Biloxi MS 39531;  email:, phone or text:228-466-4498 or 228-385-1177, fax:888-415-8922, FaceBook We have 2 Gulf Coast locations to serve you - 2505 Pass Road - Biloxi and 412 Hwy 90 Ste 6-Bay Saint Louis, MS.

We offer the following Lines of Coverage: Workers Compensation, Auto, Home, Life, Health, Disability, Motorcycle, Boat, Wind, Flood, Commercial Property, General Liability, Directors and Officers Liability, Bonds, Group and Individual Life/Health/Dental/Disability/ Vision/Long Term Care, Business Owners, Builders Risk, Commercial Crime, Errors and Omissions, Dwelling Fire, Commercial Flood, Group Accident, Garage Dealers, Inland Marine, Law Enforcement Liability, Pollution Liability, Professional Liability, Personal Umbrella, Commercial Fire, Commercial Umbrella, Excess Flood, Identity Theft, more…

We serve Mississippi, Louisiana, Alabama, Florida, Georgia, Tennessee, Texas and many other states. We specialize in coastal exposures.
Insurance is stressful, but we make saving easy.  We help you save money on insurance!
#trustedchoice #southgroup
#southgroup   @stateauto  @libertymutual @TRV_insurance @safecoinsurance @progressive #savemoney @atreutel #savemoneyoninsurance

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.