Surety Bonds
Surety Bonds are an important tool between 3 parties that guarantees work will be done correctly, compliance with agreed upon codes, protection against employee theft, or a loss in a court case proceeding. The Surety (us), financially insures that the Principal (you), will complete your taste according to the agreed upon terms to the obligee (who requires the bond). For many small businesses, winning many private and public contracts rely on specific bonds. New Redwood Insurance Services can help you navigate through the different types of bonds to find the one that benefits your situation.
Some common bonds may include bid bonds, performance bonds, liquor bonds, license & permit bonds, mortgage broker bonds, auto dealer bonds, business services bonds, warehouse bonds, and many more. Not sure what you need? Call now, and we will walk you through your options.
When you hire us, we work for you, not for the insurance companies.
Surety Bonds FAQ
Who is a Surety?
The Surety, or Guarantor is the surety company that issues the bond. The surety provides a line of credit in the case the principal fails to fulfilled the outlined work.
How does my credit score affect the cost of my surety bond??
Your application will be closely looked at by the surety provider before offering financial guarantee for your agreed upon work. Your credit score, work history, along with other finance records will determine your reliability and determine the cost.
What is the difference between a commercial and a contract bond?
Commercial bonds are issued to professionals that require license and permit bonds from auto dealers to telemarketers. The rates for commercial bonds are based on the applicants financial records. Contract bonds are only distributed to general contractors, construction companies, and subcontractors of the federal government to guarantee the outlined terms are completed during the project. The rates for a contract bond vary and are based on the specific bond type, project cost, and the potential risks.