Surety Bonds

Surety Bond Definition

A Surety Bond is an agreement subject to the Bond Form. The Surety Bond is usually required for monetary compensation for failure to perform specified acts referenced in the Bond Form. A Surety Bond is a generic name for all bonds. Surety Bonds are usually required by the state or Federal Government; these bonds are called License & Permit Bonds.

There are three parts of a Surety Bond, the first is the Obligee. They are the entity requiring the Bond. Second is the principal. The Principal is the person whom will perform the contractual obligations set forth in the Bond Form.

The third part is the Surety Company. They are the entity who will be insuring the Bond

What to Look For in a Surety Company

Always check with the Department of Insurance in your state to verify that the Surety Company is Licensed, admitted and rated in your state. You can always check with Ambest to verify a rating of a Surety Company. When you are applying for a federal license such as an ICC Broker Bond make sure that the Surety Bond Company is on the Treasury List of Approved Sureties (Department Circular 570) (T-Listed). A (T-listed) surety company means that the Surety Company is Holding Certificates of Authority as Acceptable Sureties for The Federal Government

At Kristyn K. Wilson Insurance

We only utilize Surety Companies that are A rated and T-Listed. We have a wide range of Surety Bond programs tailored to your individual or business needs from ICC Broker Bonds to Contractor License Bonds.