Surety Bond

Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Surety Bond shopping experience:

1. Compare - without doubt the biggest advantage that the Surety Bond offers shoppers today is the ability to compare thousands of Surety Bond at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.

2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about

3. Testimonials - don't know anybody that has bought a Surety Bond? Wrong! If the Surety Bond is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.

4. Questions - Got a question about Surety Bond then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....

5. Reputation - Never heard of the company selling Surety Bond? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Surety Bond and build up a picture of their reputation for sales, returns, customer service, delivery etc.

6. Returns - still worried that even after all of the above your Surety Bond wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.

7. Feedback - happy with your Surety Bond then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.

8. Security - check for the yellow padlock on the Surety Bond site before you buy, and the s after http:/ /i.e. https:// = a secure site

9. Contact - got a question about Surety Bond, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.

10. Payment - ready to pay for your Surety Bond, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.

A surety bond is a contract among at least three parties:

The principal - the primary party who will be performing a contractual obligation
The obligee - the party who is the recipient of the obligation, and
The surety - who ensures that the principal's obligations will be performed.

Through this agreement, the surety agrees to uphold - for the benefit of the obligee - the contractual promises (obligations) made by the principal if the principal fails to uphold its promises to the obligee. The contract is formed so as to induce the obligee to contract with the principal, i.e., to demonstrate the credibility of the principal and guarantee performance and completion per the terms of the agreement.

There are two main categories of bond types: contract bonds and commercial bonds. Contract bonds guarantee a specific contract. Examples include performance, bid, supply, maintenance and subdivision bonds. Commercial bonds guarantee per the terms of the bond form. Examples include license & permit, union bonds, etc.

Suretyship bonds originated hundreds of years ago as a mechanism through which trade over long distance could be encouraged. They are frequently used in the construction industry: in order to obtain a contract to build the project, the general contractor (and often the sub-contractors as well) must provide the owner a bond for its performance of the terms of the contract. Conversely, owners and contractors may also provide payment bonds to ensure that subcontractors and suppliers are paid for work done. Under the Miller Act, payment and performance bonds are required for general contractors on all U.S. federal government construction projects where the contract price exceeds $100,000.00.

Surety bonds are also used in other situations, for example, to secure the proper performance of fiduciary duties by persons in positions of private or public trust.

A key term in nearly every surety bond is the penal sum. This is a specified amount of money which is the maximum amount that the surety will be required to pay in the event of the principal's default. This allows the surety to assess the risk involved in giving the bond; the premium charged is determined accordingly.

If the principal defaults and the surety turns out to be insolvency, the purpose of the bond is rendered nugatory. Thus, the surety on a bond is usually an insurance company whose solvency is verified by private audit, governmental regulation, or both.

The principal will pay a premium (usually annually) in exchange for the bonding company's financial strength to extend surety credit. In the event of a claim, the surety will investigate it. If it turns out to be a valid claim, the surety will pay it and then turn to the principal for reimbursement of the amount paid on the claim and any legal fees incurred.

A bail bond is a type of surety bond used to secure the release from custody of a person charged with a criminal offense. Under such a contract, the principal is the accused, the obligee is the government, and the surety is the bail bondsman.

Examples of Surety Bonds:

Bid Bond
Performance Bond
Advance Payment Bond
Retention Payment Bond
Maintenance Bond
Contractor License and Permit
Court
Customs
Lost security (finance)
Money Transmitters
Mortgage brokers
Motor Vehicle Dealers
Patient Trust Funds
Probate
Public official
Tax bonds
Telemarketing
Country subdivision
Utility deposit
Wage and Welfare/Fringe Benefit (Trade union)
Public Warehouse
Supply bonds

Online Transaction Supply Bonds

Self–Insured Workers compensation
Insurance Company Qualifying
Reclamation

Examples of fidelity bonds:

ERISA
Business Service Bonds
Public Official
Manufacturers
Small Businesses
Non-Profit Organizations
Real Estate Managers
Title Agents
Financial institutions
Precious Metal Exposures
Armored Car