A surety bond is defined as a three-party agreement that legally binds together a principal who needs the bond, an obligee who requires the bond and a surety company that sells the bond. The bond guarantees the principal will act in accordance with certain laws. If the principal fails to perform in this manner, the bond will cover resulting damages or losses.
You may have heard the term “licensed, bonded and insured.” What does it mean to be “bonded”? Basically, it means the person or business has purchased a surety bond.
Surety bonds are a business’s way of reassuring customers that they stand behind their promises—and if they don’t, consumers will be protected. If a business breaks its promises to its customers and they suffer financial loss, the bond can provide reimbursement.
In short, a bond protects the business’ clients. For the business owner, a bond is another way to communicate the integrity of your business.
Some of the more common bonds we issue here at Agape Insurance Partners are for Notaries, Contractors, Janitorial and Cleaning Services and Title Bonds.
There are over 50,000 types of surety bonds so contact Agape Insurance Partners and let us help you navigate through the process of obtaining a bond.