Surety bonds are like people — they come in all shapes and sizes. Bonds protect others by confirming your identity and your commitment to fulfilling your obligations.
Unlike insurance — which protects you from unexpected losses — a surety bond is a three-party agreement that guarantees you will fulfill a specific obligation to a third party. If you fail to meet that obligation, the bond compensates the affected party. Bonds are frequently required by government agencies, licensing authorities, courts, and large clients as a condition of doing business.
Protects employers from losses caused by dishonest or negligent employee actions including fraud, theft, forgery, and embezzlement. Essential for businesses where employees handle cash, inventory, or client assets.
Required under the Employee Retirement Income Security Act to protect employee benefit plan participants from fraudulent or dishonest acts by the plan's fiduciaries and administrators who handle plan funds.
Covers the policyholder against financial losses resulting from fraudulent or dishonest acts committed by specified individuals — typically named employees. Broader than a blanket dishonesty bond in some applications.
A court-mandated judicial bond that guarantees court-appointed fiduciaries — such as executors, trustees, or guardians — will faithfully carry out their duties as required by the court. Required before the fiduciary can act.
Issued through counties and municipalities to enable contractors to pull permits quickly. One of the most common bonds for trade contractors, and often one of the most affordable — frequently under $100 per year.
Guarantees that a contractor or subcontractor will complete contracted work within the agreed timeframe and specifications. Required on many commercial and public construction projects. Premiums are based on the total contract value.