The given Infographic is created by the Suretegrity, the only online agency that gives instant access to the surety Bonds in America. This Infographic is designed with the intent of describing types of Surety Bond that are available for the project owners or business men to buy, also it describes how the cost of a Surety Bond is decided.
A surety Bond involves three parties generally:
The Principal: the project owner, contractor or the businessman who need to buy a Surety Bond in order to fetch permission from the government authority to engage in certain business activities.
The Obligee: it is the party who is the recipient of the obligation. In most cases it’s the government authorities who make sure that the interest of general public and taxpaying citizens are not hampered.
Surety: It is the insurance company that backs the surety bond, in case the Principal fails to comply with the rules and regulations of the state and fails to complete his project or contract; then Surety reimburses the government with the amount equivalent to the suffered loss or the amount mentioned in the Bond.
There are many types of Bonds prevalent today, you need to know about. You can go through the given Infographic and know about popular commercial surety bonds.
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