A surety bond guarantees that the person, business, or agency that hired you will get what they paid for. It is a three-party contract by which one party (the surety company) guarantees the performance or obligations of a second party (you) to a third party (the client).

Surety bonds are common in the construction industry since construction involves an agreement between a contractor and their client. A construction surety bond gives the client reassurance that a contractor will uphold these agreements. In addition to construction surety bonds, there are numerous other surety bonds that guarantee the fulfillment of something.

Contractor Bonds: Contractor bonds are a type of surety bond that protects against financial loss due to the contractor's failures, such as disruptions or failure to meet contract specifications. They are frequently required by law for any contractors or businesses working on public projects.

Commercial Bonds: Commercial bonds provide a financial guarantee of your work and protect your clients from risk. The two most common types of commercial bonds are surety bonds and fidelity bonds. For bonds under $100K, we utilize Propeller to streamline the process of fast and easy issuance of commercial bonds.

Fidelity Bonds: Fidelity bonds, on the other hand, protect you and your clients from certain intentional acts by your employees—such as theft, embezzlement, or employee misconduct. This type of bond is designed for service-based businesses, especially those with employees working on a client’s premises. Your general liability insurance only covers accidents, so a fidelity bond is important for protecting against intentional acts that could ruin your business and your reputation.