There are multiple reasons one would be asked to obtain a bond. A surety bond is a promise of liability or contract between 3 parties; the insurance company, the principal (you) and the obligee (person or business requiring the bond). The insurance company that holds the bond financially guarantees the principal will act accordingly; guaranteeing certain tasks/duties are fulfilled. They are quite simple but definitely hold someone accountable for their actions.
Some reasons you may need a surety bond:
- You are an officer in a club or non-profit organization who needs to be bonded to handle the financial affairs.
- You may be a notary within the state of Pennsylvania which would require a notary bond to protect the public against mistakes or wrongful acts.
- You are a contractor putting in a bid & need a bond that says you will enter into contract if the bid is accepted.
- You are a public official and need a bond to make sure of your compliance to regulations.
- Bonds are issued to protect customers of a business from actions by employees of that business.
- You are a contractor & need a bond to guarantee you will fulfill the terms of the construction contract.
- There are bonds to guarantee the contractor will pay the subcontractors.
- Cleaning companies may need to get their employees bonded to protect against property damage & stolen items at a customer's location.
- A tenant in a commercial lease may be required to have a surety bond to guarantee payment of their lease.
- If you are a lawyer that handles estates, a bond can be a requirement for an executor to ensure they fulfill their legal obligations.
Surety bonds may be used in a variety of situations & seem complicated but they are actually straight-forward. Whatever type of bond you need, reach out to Snyder Insurance Agency as we can help. We have a brokered market that handles many different types of bonds for individuals and businesses.
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