What are surety bonds?
When one party in a contract is heavily reliant on the performance of the other, the dependent party might want a way of ensuring that the work is done as contracted. Surety bonds offer one way of helping Massachusetts businesses ensure contracts are adhered to.
The failure to fulfill contractual commitments can lead to significant monetary losses for one party. Surety bonds may offer the affected party with financial protection in cases of failure.
Which businesses typically obtain surety bond insurance?
Surety bond insurance is used for a variety of contracts that Massachusetts businesses and individuals enter into. Car dealers, contractors, custodians, fiduciaries and others may need a bond.
Because a guaranteed is needed in many different contractual situations. Insurance companies offer a few different types of surety bond insurance. An insurance agent specializing in these bonds can help find the right type of bond for a particular situation.