SURETY BONDS

Labor and Material Payment Bond

A bond given by a contractor to guarantee payment to certain laborers and suppliers for the labor and material used in the work performed under the contract. This liability may be contained in the performance bond, in which case a separate labor and material bond (payment bond) is not given.

Maintenance Bond

A bond which normally guarantees against defective workmanship or materials. However, maintenance bonds may occasionally incorporate an obligation guaranteeing "efficient or successful operation" or other obligations of like intent and purpose.

Performance Bond

A bond which guarantees performance of the terms of a written contract. Performance bonds frequently incorporate payment bond (labor and materials) and maintenance bond liability.

Construction Contract Bond

Guarantees that a contractor will perform his/her obligations under contract for the benefit of the owner. It covers whatever obligations the contractor assumes in the contract, in accordance with the plans and specifications that are a part of the contract, for an agreed sum of money to be paid to the contractor by the owner, whether public or private. It follows in sequence after bid bonds have been posted and the bid has been awarded.

Subdivision Bond

A bond guaranteeing to construct or finance improvements such as street, sidewalks, curbs, gutters, sewers, and drainage.

Supply Bond

A bond which guarantees performance of a contract to furnish supplies or materials. In the event of a default by the supplier, the surety must indemnify the purchaser of the supplies against the loss occasioned there by.

License & Permit Bonds

License and Permit Bonds are required in order to obtain a license or permit to engage in certain business activities or to fulfill certain statutory requirements. The bonds are generally filed with applications when obtaining a license or permit. The most important function of a License & Permit Bond is to provide protection to the general public and governmental bodies. They strengthen existing laws, ordinances, and regulations designed to protect the public at large. These bonds safeguard the public against financial loss caused by the malfeasance and misuse by respective licensees. They may also guarantee the payment of certain taxes and/or creditors.

Miscellaneous Bonds

Miscellaneous Bonds do not fit neatly into any major category. Miscellaneous Bonds provide miscellaneous indemnity as required by statutory law, various written agreements, or non-construction contracts. There are a wide variety of miscellaneous types of bond obligations, but the underlying obligation for each is to provide financial guarantee on a respective obligation.

FIDELITY BONDS

Business Service

A bond that covers any loss of money or property to any and all clients by the owners and employees.

Commercial Crime for Mercantile or Governmental Entities