Energy Industry Bonds
Renewable energy generation, storage, and distribution often requires a variety of specialty bonds such as decommission and interconnection bonds but most often investors and developers look to have EPCs, O & M’s, Subscription Management Companies and a variety of offtakers providing some sort of a performance bond to guarantee the faithful performance of their role in a renewable energy project. Oil and gas, onshore and offshore, and mining require specialty bonds such as plugging and abandonment bonds as well as contract, performance, payment, and maintenance bonds.
Government entities often require bid bonds that state that the contractor has been approved by a surety so that if they win the award they can fulfill the requirement to provide a performance and payment bond and sometimes a maintenance bond to the government for starting a project. These bonds guarantee the faithful performance of the contract and protect the U.S. taxpayer.
In private industry, it is often required that the contractor, and in many cases the subcontractor, provide performance and payment bonds to protect the faithful performance of their contracts on behalf of the developer and/or investors.
Required by various court jurisdictions to ultimately protect the interests of all parties concerned.
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 due to employee dishonesty.
The Surety company engaged in an out-of-state bonding business must be licensed in every state 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 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 important for providing consumers with the necessary support for acquiring 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 the bond 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 example, a plaintiff wins a judgment, but the defendant wishes to stay the order to pursue an appeal. In these cases, the court will require a supersedeas bond in order to grant the stay. The bond guarantees to the court that the judgment is collected in the event that the appeal fails. To better understand this, you must understand the importance of each party:
The Surety could be an insurance company with a surety department that underwrites bonds, or a specialized issuer who only works with bonds. 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 as well as most governmental agencies and leading corporations and institutions in the United States.
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. In most cases, the obligee will require a surety bond to be issued by a highly-rated insurance company or specialized Surety company. They will not accept a guarantee from an institution of lesser quality.
The person or company required to provide the bond, prove financial capability and any other necessary 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 with established credentials. Most quality surety bond agents specialize in surety and are members of the National Association of Surety Bond Producers. Although many surety bond agents are also 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 in addition to bonds. A surety broker is usually an insurance agent who obtains bonds for their clients by working with 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 become a better prepared consumer. Unique Surety will help to determine if you are a qualified candidate to secure a surety bond. There are many different kinds of bonds that satisfy various needs. Unique Surety specializes in appeal/supersedeas bonds, construction bonds, distributed renewable energy bonds and commercial contract supply bonds.
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