How Does A Surety Bond Work?

Learn the surety bond basics. A surety bond is a third-party guarantee. It is a promise by a surety or guarantor to pay the obligee (who is requiring the bond) or the principal’s client a certain penal amount if the principal (who is applying for the bond) fails to meet some obligation, such as fulfilling the terms of a contract. So, how does a surety bond work? The surety bond works by protecting the obligee or principal’s client against losses resulting from the principal’s failure to meet the obligation. Note that a surety bond does not protect the principal.

What Types of Surety Bonds Does Single Source Insurance Sell?

Single Source Insurance, LLC, sells thousands of types of surety bonds and fidelity bonds.

How Do Surety Bonds Work?

Unlike insurance, surety bonds protect the client, not the business owner.

The Obligee

This party is the recipient of the obligation. The one who is requiring the bond.

 

The Principal

This party has the responsibility of performing the contractual obligation of the bond.

The Surety

This is the group or entity that insures the principal will perform the task for the obligee.

surety bonds and fidelity bonds

Our team has decades of experience selling thousands of different types of surety bonds and fidelity bonds.

How Does Single Source Insurance Get You the Best Bonds and Rates?

There are many reasons bonds from Single Source Insurance come with the best prices and service. Learn how we make surety bonds work for you:

    • 100% free quotes provided
    • Only “A” rated insurance companies used for better quality products
    • No application or credit report fees
    • In-house underwriting on many bonds offers faster turnaround
    • Financing options available for some bonds