Surety Bonds for Bermuda Dunes, Cathedral City, Indio, La Quinta, Palm Springs, Thousand Palms, Coachella CA and Surrounding Areas
Surety bonds are used to provide financial guarantees to interested parties that are involved in business relationships. For example, when a contractor is bidding on a project, and the bid is accepted, they would be required to obtain a surety bond from an insurer. This would provide a financial benefit to the other party (called the obligee) if the contractor (the principal) did not honor the terms of the contract. We can help people find the right surety bonds, and there are essentially four different possibilities.
Contract Surety Bonds
These are the bonds that would apply to the scenario outlined above. A contractor would obtain the bond to protect the interests of the obligee that awarded the project to the principal. There are four different types of contract surety bonds:
- Bid Bond
- Performance Bond
- Payment Bond
- Maintenance Bond
Commercial Surety Bonds
In essence, government agencies represent the public. When they engage contractors, they need to protect the public’s interests. This is done though the utilization of commercial surety bonds that are purchased by the contractor. These are some of the most commonly issued types of commercial surety bonds:
- Mortgage Broker
- License and Permit
- Utility Bond
- Auto Dealer Bond
- Lottery Bond
- Liquor Bond
- Fuel Tax Bond
Fidelity Surety Bonds
A company can purchase a fidelity insurance bond that would provide reimbursement for losses due to instances of employee theft or dishonest behavior that yields financial consequences. These bonds protect the company, and they can also cover losses incurred by customers. Fidelity surety bond varieties include:
- Business Services Bond
- Employee Dishonesty Bond
- ERISA Bond
Court Surety Bonds
These bonds are used to protect plaintiffs and defendant that may be subject to legal judgements. They are usually not required, but there are some exceptions when a representative has a fiduciary responsibility. Court surety bonds come in many different forms, but the following are the main types:
- Attachment Bond
- Administrator Bond
- Cost Bond
- Guardianship Bond
If you need any of these bonds, or are interested in more information, we would be more than glad to provide detailed explanations.
