The Importance of Guarantees for Professional Workers in Industry
A surety bond is an insurance policy that guarantees that a business or contractor will be able to render their services faithfully. Surety bond insurance is generally required of professionals in industries such as construction and automobile sales, although the laws regarding who needs to purchase a surety bond will vary from one state to the next.
How a Surety Bond Works
Even though there are different types of surety bonds that all have their own requirements, most operate in roughly the same way. A surety bond works as insurance that protects the client being served. If the business owner or contractor in question fails to fulfil their obligations to a client, that client can file a claim against the bond. The insurance company that sold the bond to the principal reimburses the client according to the terms of the bond, while the principal is then responsible for paying the … Read the rest >>>