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Surety Bond News

November 2023

What is a Contract Bond?

What is a Contract Bond?

A contract bond, also known as a construction bond, is a type of surety bond used in the construction industry to ensure the successful completion of a construction project according to the terms and conditions specified in a contract. These bonds provide financial protection for project owners (obligees) by guaranteeing that the contractor (principal) will fulfill their contractual obligations. There are three primary types of contract bonds: Bid Bonds: Issued during the bidding process, bid bonds provide...

What is a Commercial Surety Bond?

What is a Commercial Surety Bond?

A commercial surety bond is a type of surety bond that serves as a financial guarantee between three parties: the principal, the obligee, and the surety. These bonds are not related to construction projects but rather cover a broad spectrum of activities and industries outside of the construction sector. Commercial surety bonds are typically required by government entities, regulatory agencies, or other organizations to ensure that individuals or businesses fulfill their legal and contractual obligations. The...

August 2019

What is a Surety Bond?

Surety Bond Overview - Bond Republic

Welcome to our bond education center. Here, we'll cover some surety bond basics.

What is a Surety Bond?

A surety bond is a contract between three parties - the principal, the obligee and the surety - whereby the surety and the principal promise to the obligee that the principal will fulfill some sort of obligation. If the obligation is not met, the obligee has the right to recover a stated penalty amount from the surety which, in...

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