How to Buy a Surety Bond By Jason Kay At Isnare.com Ezine Articles

A surety bond is a contract between at least three parties. The principal is the party that will be performing the contractual obligation, the oblige is the recipient of the obligation, and the surety is the one who ensures that the principal’s obligation is met. Through this agreement, the surety agrees to uphold, for the benefit of the oblige, the contractual promises –obligations- made by the principal if the principal fails to uphold its promises to the oblige. The contract is formed to demonstrate the credibility of the principal and guarantee performance and completion of the agreement. 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 and permit, and union bonds. Individual Surety Bonds are the original form of suretyship. Surety bonds are used for a wide variety of contracts but are very common in the construction industry.

Where to buy a surety bond all depends on the type of surety bond that is needed. The Surety and Fidelity Association of America is the organization responsible for licensing and regulating surety bond brokers and agents. While prices of the surety bonds will vary according to the type of bond and contract being entered into, the state in which the surety bond is needed also comes into play.

To locate a qualified broker or agent of surety bonds in your state you can visit the National Association of Surety Bond Producers website –www.nasbp.org.- Once on the home page you can mouse over the link that says, “Need a Bond?” that is on the top of the website. This will drop a menu down and you can then click on “Find a Producer in Your State.” You will then be taken to a page with a map of the United States. Here you simply click on your state, such as Florida, and a list of licensed bond agents will appear on a new page. You will be able to find information on their locations, their phone numbers, e-mail addresses and even their websites. Once you find an agent you like you can call them to make sure that they will be able to provide you with the surety bond you need and at what price the bond will be. Many agents also offer a free quote online once you provide them with some needed information.

Remember, each state has its own rules and regulations when it comes to surety bonds. It is always best to check with your local and state governments to make sure that the proper procedures are being followed to ensure your contract goes along as smoothly as possible.

Surety bonds are a necessity in America. With surety bonds companies can guarantee completion of roads, schools, hospitals, and more. Having surety bonds not only ensures that work gets done properly but that state regulations are being followed as well. For this reason alone it is important to make sure that you are buying the proper surety bond for your contract and that you are buying it through a licensed agent.

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