A surety bond is a guarantee that your business will be able to deliver on a designated project. Commercial surety bonds are generally required by state laws and statutes, and guarantee some aspect of a principal’s occupation. A contractor license bond, for example, guarantees the contractor will comply with required construction codes.
There are four common types of surety bonds:
- Bid Bond: Ensures the bidder on a contract will enter into the contract and furnish the required payment and performance bonds if awarded the contract.
- Payment Bond: Ensures suppliers and subcontractors are paid for work performed under the contract.
- Performance Bond: Ensures the contract will be completed according to the terms and conditions of the contract.
- Ancillary Bond: Guarantees other factors that are incidental and essential to the performance of a contract.
There are many other types of commercial surety bonds, and Professional Solutions can help you find the one you need.