Absolute Surety, LLC

What are Surety Bonds?

Every time I meet someone new the standard question I hear is "What line of work are you in?" Once I tell them I am in the Surety Business the look on their face goes straight to confusion. I then proceed to tell them not to feel bad, that if they haven't heard of a Surety Bond before, they simply haven't been asked to provide one.

So what exactly are Surety Bonds?
Surety Bonds are a contract in which there are 3 parties involved.
1. The Obligee - This is the person requiring the Surety Bond. Most of the time it is a State or other government agency.
2. The Principal - This is the person who will be performing the obligation stated in the contract.
3. The Surety - They will guarantee the Obligee that the principal will perform according to the contract.

There two main categories of Surety Bonds - Commercial Surety Bonds - Contract Surety Bonds
Some common types of Commercial Surety Bonds are:

Collection Agency Bonds
Health Club Bonds
Insurance Broker Bonds
License and Permit Bonds (There are thousands of L&P bonds)
License Contractor bonds
Lottery Bonds
Mortgage Broker Bonds
MVD Bonds (Also called Used Motor Vehicle Dealer Bonds)
Seller of Travel
Utility Bonds
There are literally THOUSANDS of different types of Commerical Surety Bonds!

Contract Surety Bonds
Types of Contract Bonds

Bid Bonds - This guarantees that if the contractor is the low bidder of a job, they will honor the bid and sign a contract to complete the job.

Performance Bonds - This guarantees that the job will be completed within the terms and conditions of the contract.

Payment Bonds - This is to guarantee that the subcontractors, laborers and suppliers will be paid the money they are due.

Should you ever have a question regarding Surety Bonds, please feel free to shoot us an email!