Surety and Fidelity Bonds are financial instruments that help facilitate commerce and economic development. They also protect the economic interests of public entities, consumers, taxpayers and businesses, in order to safeguard the interests of the general public.
are required by various court jurisdictions to ultimately protect the interests of all parties concerned.
Protect an entity requiring a contract to stipulate that the contractor will perform the work as agreed in the terms and conditions of the contract. These bonds frequently require a Bid Bond to prove that a surety will issue a Performance Bond if the contractor wins the bid. A Payment Bond requires that the winner of the bid pay all the subcontractors and also pay for the material. A Maintenance Bond provides a guarantee against defective workmanship or materials for a specified period of time after the completion of the project.
Commercial Contract Supply Bonds
provide financial security for the entity requiring a contract to make sure the contractor delivers the goods in a timely fashion, as stipulated in the contract.
License and Permit Bonds
are used to secure tax or fee payments or to provide consumer protection as a condition of granting various licenses and permits by cities, counties and states.
protect employers, the government or an entity from losses arising from employee dishonesty.
The Surety company engaged in the bonding business outside of the State of its incorporation must be licensed in all of the States in which it proposes to operate. The United States Treasury Department sets standards for the Surety to qualify financially under its regulation.
Unique Surety and Insurance Services, LLC (hereinafter referred to as Unique Surety) will walk you through the process as quickly as possible so that you can obtain a competitively priced surety bond. Matching a qualified candidate with the correct Surety carrier is a specialized skill that gives the consumer the needed support when required to provide a Surety bond in a relatively short span of time.
What is a Surety Bond?
A surety bond is a written agreement where you, the Principal, must present a financial guarantee in the form of a bond to an obligee who requires this bonded guarantee to be issued by an appropriate Surety. In the case of general commerce, a surety bond will guarantee the performance of a contract. In the case of a court bond, a surety bond such as a supersedeas/appeal bond will guarantee the prevailing party in a civil case; for instance, the plaintiff who won a judgment when the defendant wishes to stay the order for execution in order to pursue an appeal. The court will require a supersedeas bond in most cases in order to grant the stay and the bond guarantees to the court that the judgment can be collected in the event that the appeal fails. To better understand this, you must understand the importance of each party:
The Surety –
An insurance company with a surety department that underwrites bonds or a specialized issuer who only works with bonds known as a surety company. The United States Treasury issues an approved list of surety bond issuers. Unique Surety works with this select group since they are deemed appropriate by the court system, most governmental agencies and leading corporations and institutions in the United States.
The Obligee –
The person or organization requiring a surety bond such as the court system, most governmental agencies and leading corporations and institutions in the United States. The obligee will in most cases require a surety bond to be issued by a highly rated insurance company or specialized Surety company. They will not accept a guarantee from the institution of lesser quality.
The Principal –
The person or company required to provide the bond and able to prove financial capability and other factors in order to qualify and be issued a surety bond.
Surety bonds are issued through surety bond producers. A surety bond agent is appointed by an issuer who has established the credentials to earn that appointment. Most quality surety bond agents are members of the National Association of Surety Bond Producers. Many surety bond agents specialize in surety and, although they are licensed insurance agents, they distinguish themselves as “bond only” agencies. A surety bond agent can also be a member of a general insurance agency that writes all types of insurance and not just bonds. A surety broker is usually an insurance agent who obtains a bond for their client by going through an appointed surety bond agent or a carrier that accepts brokered business.
Unique Surety is a bond only agency that is directly appointed as a surety bond Agent by an insurance company or surety company that is listed on the approved list by the United States Treasury Department.
Stay up to date with our upcoming blog to better understand the surety process and to educate yourself to become a better prepared consumer. Unique Surety will help you discover if you are a qualified candidate to secure a surety bond. There are many different kinds of bonds to satisfy a variety of needs. Unique Surety specializes in appeal/supersedeas bonds, construction bonds and commercial contract supply bonds.