Let’s face it: with all the liability risks businesses face today, people expect more than a promise.
Missed completion dates, costs overruns and other missed assurances create unique situations that can cost companies hundreds of thousands of dollars. That’s why so many companies insist on surety bonds. In fact, for many businesses a surety bond is mandatory when hiring a contractor to complete a project.
A surety bond involves a contract among at least three parties who include the:
- Obligee – The party who is the recipient of an obligation
- Principal – The party primarily responsible for meeting the contractual obligation
- Surety – Third party who assures the obligee that the principal will perform the task.
In our case, the surety is a top-rated insurance company who agrees to pay specified monetary compensation (up to the limits of the surety bond) in the event the principal fails to meet their obligation.
This monetary compensation provided should a provider fail to perform according to contractual agreement provides the guarantee many principals now require from service providers; especially when budgetary concerns and time commitments are of the utmost importance.
Hastava Insurance Agency can secure a variety of surety bonds for a wide range of requirements.
Surety bonds for contractors are the most common types, but we can provide a myriad of surety bonds to meet various needs.
- Bid Bonds – allowing you to bid on bonded jobs
- Performance Bonds – guaranteeing the obligee that your work will meet contractual requirements
- Payment Bonds – guaranteeing your payment to all sub-contractors, laborers and suppliers
- Maintenance Bonds – Provide a warranty on your work for a specific amount of time after project completion
- Supply Bonds – Ensures contractual delivery of materials by suppliers
- License & Permit Bonds
Ask the professionals
For many businesses, a surety bond is mandatory when hiring a contractor to complete a project. Let a Hastava Insurance Agent show you which surety bonds fit with your business and legal needs.Schedule a Consultation