What Does a Surety Bond Involve?
Surety bonds are a type of license or permit bond. Sometimes you are required to have such a bond to do business in a certain city, county, or state. The bond is a guarantee that the principal will perform work in the manner agreed upon. If the principal fails to perform, the bond will cover resulting losses or damages.
There are three parties involved in any surety bond:
- Principal: The party in need of the bond
- Obligee: The party requiring the bond
- Surety Company: The party selling the bond
Your Snyder broker can help you determine whether you need a surety bond for the kind of work you’d like to perform. Call us today to speak with a Snyder team member. We will be happy to assist you in discussing the numerous different bonds and what your line of work requires.