A surety bond is a contract between three parties—the principal (you the insured), the surety (insurance company), and the obligee (the entity requiring the bond)—in which the surety financially guarantees to an obligee that the principal will act in accordance with the terms established by the bond. For each situation, there is a different bond.
A bid bond assures that a bid on a project is submitted in good faith, that the contractor will enter into the contract at the bid price, and that the contractor will provide the required performance and payment bonds. Performance Bonds – A performance bond is used to protect the owner from financial loss should a contractor fail to perform the contract in accordance with its terms and conditions.
A guarantee that the bonded employee(s) will handle their employer’s money and property with fidelity. Employee theft can deliver a striking blow to a business. Surveys show that a surprisingly large number of employees have admitted to stealing from their employers during the previous year.