International Surety Bonds and How They Aid Your International Ventures

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With businesses going global, the investment flow around the world has risen. With that, the risk of losing those investments has also gone up. Businesses must obtain a surety that their investment won’t go in vain in an international venture. If you are sailing in the same boat, it’s time you consider the advantages of international surety bonds in Florida. These bonds provide coverage of millions of dollars, making them ideal for all international professional deeds.

You must check with a surety company in your area regarding the coverage you can expect and the sectors they cater to. You must also check the regions they provide coverage for, and if the coverage they offer is also what you seek.

What International Surety Bonds Entail?

  • Surety coverage in most of the countries around the world
  • Maximum coverage available for the world’s leading countries
  • Association with leading insurers and surety companies operating in those regions
  • Protection of your own surety company financially
  • Opportunities to score multiple contracts at the same time
  • Complete details available with your surety company about the risk areas in the new country and how to overcome them

Companies working with all types, sizes, and owned by both government and private players in that country can apply for international surety bonds.

You must read all surety bond documents carefully before proceeding with your decision. You must also approach the leading surety company in your region and ask them all questions you have at that time. You can check for their credibility through their financial ability, past performances, as well as reviews about them by their former clients.

Do you also want to take your business global? Then contact your nearest surety company to initiate the surety bond process for you today.

Get Coverage with Commercial Surety Bonds for All Kinds of Commercial Projects

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Surety bonds can be used for many purposes. In general, they provide one party financial protection if the other party breaks the contract terms. One of the most important surety bond types is the commercial surety bonds. Companies working in different domains, as well as working professionals, have to furnish this bond to prove their compliance with the state licensing and permit regulations. These bonds help them get benefits and qualifications into multiple sectors like banking, healthcare, real estate, auto industry, and more.

What Does This Bond Mean to You?

Companies or individuals who furnish commercial surety bonds come with an assurance that they comply with the state regulatory terms. This means you can enter into a working association with them without the fear of getting cheated. In a very rare event that the company unintentionally violates a contract you have with them, you can approach the surety agency that issued the bond. They can compensate for your losses as per the bond terms.

That also means the company/individual losing their credibility, while also becoming liable to pay the surety company as per the agreed bond terms. So, the project owner will never lose any money, while the company/individual working on it will be penalized for defaulting on the project. That is a rare instance, though, thanks to all the research already put in by the surety company. If the surety company is credible, you can trust their bond without thinking twice.

A Commercial Surety Bond is one of the necessary documents many state departments seek before awarding them the license to operate in the region. You can check the bond terms and conditions, as well as the credibility of the surety company before forming an association with the company. Contact the leading surety company in your area to know more about it.

Here’s Why You Can Trust Contract Surety Bonds for Contracting Projects

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Getting good performance out of a contractor working on a project is very tricky. That’s why there are Surety Bonds that keep their performance in check and penalize the contractor if there is any delay or default. When it comes to the construction business, there are more specific bonds that guarantee project owners of obtaining a satisfactory performance. Contract surety bonds are one such bond type that assures the obligee (project owner) of good performance as per the agreed terms and conditions in the contract. It also lists the details for paying other parties that are working on the project, such as subcontractors, laborers, material suppliers, etc.

Why You Can Trust Contract Surety Bonds

The primary goal of Contract Surety Bonds is to bind the contractor to his duties on the project. Surety companies issuing the bond spend a lot of time and resources to check the contractor’s credibility before they issue them the bond. If there is a red on the contractor’s record, they don’t get the bond. If there is an acceptable reason for their delay or default, they get the bond, but with a lower bond value. Project owners can learn all about it through the bond itself.

Aspects that Surety Companies Screen

  • Financial Capability: This covers their annual financial statements, cash flow, working capital, and net worth. Other factors such as investment strategies, running projects, credit score, and cost control strategies are also considered.
  • Performance Ability: Past performance of earlier projects comes into the picture here. Other factors such as access to required equipment, qualified personnel, workload management, and management and organizational chart also play a vital role.
  • Industry Reputation: This covers the contractor’s reputation with their subcontractors, suppliers, previous project owners, as well as lenders.

Want to learn more about how to secure a surety bond in the most secure way? Then contact the leading surety bond agency operating in your region today.

How Buying Notary Bonds Can Help You with Notary Documents

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The idea of a Surety Bond is to protect the interests of a person or a party. It is not like insurance that is only meant for financial protection. Instead, a Surety Bond defines the terms that a person has to abide by, while executing a task. In a legal framework, a notary public legally approves the signatures made on important documents. Notary Bonds are one of the very specific Surety Bonds that protect the public from mistakes made by the notary public while doing their job.

Why Notary Bonds are Needed?

Notary documents are critical since they define the ownership or right over an item or a property. Any mistake made either deliberately or fraudulently can hurt its actual owner’s rights. A Notary Bond ensures that even if the notary public makes a mistake, the owner isn’t punished for it. The bond itself can be used as a proof of the owner’s right over the item or property in question.

Buying a Surety Bond

If you are going to get a document prepared by the notary public, you must also buy a Notary Bond. For a very minimal value, you will be reducing the financial risk that you may incur because of a mistake or fraudulent practice of the notary public. Ensure that you buy the bond from a dependable surety company that can fully justify your faith.

If needed, you can also add to change certain terms within the bond using a rider. This must be done while staying within the legal guidelines defined for a notary bond. The bond itself should be enough to make the notary public carefully draft the document or get penalized for their error. Your rights will thus be adequately secured.

For more information and assistance, speak to your nearest surety company today.

What are Surety Bonds and How Do They Work?

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2021 promises to be banner year for Florida’s transportation and infrastructure industry with the State Transportation Work Program. This program includes vital funding to increase infrastructure capacity, new highway construction, bridge repairs, and seaport, aviation, and transit program improvements. As a result, the need for obtaining Surety Bonds will  be greater than ever.

Surety Bonds perform an essential role in the construction industry. A Surety Bond is a three-way contract between the surety (the company providing the bond), the principal (the contractor) and the obligee (the project owner). The principal usually applies for the Surety Bond with the surety and it is to protect the obligee’s interest.

A Surety Bond is simply a three-party agreement or contract where the first party, the surety, guarantees the performance of the second party, the principal (contractor), if they default on their obligation to the third party, the obligee (project owner).

The reason Surety Bonds work so well is simple. They help to take the risk out of a risky business. Surety Bonds are designed to protect your interest from the actions of a third party.

Types of Surety Bonds.

There are variety of Surety Bond types designed to meet your needs. In fact, almost any contract or obligation can be bonded. The four most common types of Surety Bonds include Contract Surety Bonds, Commercial Surety Bonds, Court Surety Bonds, and Fidelity Surety Bonds. But, for this article, we will focus on the most common bonds used for road and highway work – Contract Surety Bonds.

Contract Surety Bonds

In the construction industry, the most common bond types are Contract Surety Bonds. They include Bid Bonds, Performance Bonds, and Payment Bonds. All are needed for different purposes to ensure that the interests of the obligee are protected, especially if the principal fails to meet the terms of their contract.

Bid Bonds financially protect an obligee if the bidder awarded the contract fails to sign the contract and fails to provide the essential Performance and Payment Bonds.

Performance Bonds, on the other hand, are put in place to protect the obligee from monetary loss if the contractor fails to deliver the job according to their agreement.

Payment Bonds are there to guarantee that the contractor is going to pay the workers, subcontractors, and material suppliers involved in the project.

A Contract Surety Bond protects the project owner by guaranteeing that the contractor will follow the specifications and perform the work laid out in the construction contract. It also ensures that certain labor, materials suppliers, and subcontractors will be paid.

What Do You Need for a Surety Bond?

Before you apply for a Surety Bond in Florida, make sure that all your documents are in order so that you can expedite the whole process. Essential documents include:

Financial Records: Surety companies will ask for both personal and business records. For businesses with less than $20 million in sales, you will need to provide financial statements for the last year and for the interim period in this year, most recent personal and corporate tax returns, financial records of majority shareholders, and a bank reference letter. Companies with more than $20 million in sales need to show their audited financial records.

Resumes: Some surety companies may ask for resumes of key personnel. Make sure to highlight any relevant experience.

WIP Form: WIP stands for “Work in Progress” form. Ask your surety company for the relevant form. This details all the projects you have completed recently, ongoing work, and any outstanding surety.

Insurance: Some surety companies may insist on work insurance to see that there are no uninsured liabilities.

References: Companies issuing Surety Bonds in Florida will ask for references from associated parties, such as past clients, suppliers and so on. The references are an indication of other’s trust in your ability.

Apply for a Surety Bond Online:

Surety Bonds are usually required for contractors to work on projects. Without it, a contractor might not be able to work with project owners, workers, and material suppliers. These are the people who play a significant role in the successful completion of contracted jobs. Surety Bonds protect project owners if the principal does not fulfill their obligations per the terms of their agreement.

With a new administration also proposing to make “historic investments in infrastructure”, there should be plenty of new projects in 2021 and numerous contractors bidding on these projects. With Surety Bonds usually required to even start the bidding process, you must find a reputable Surety Bond company to apply with – one that has a strong reputation and is an industry leader. Before choosing a surety company, make sure they have the available resources to support the project you are bidding on.

But obtaining a Surety Bond can be a grueling, time intensive process. That’s why more companies turn to America’s number one provider of Surety Bonds, Nielson, Hoover & Company. To learn more, call 305.722.2673.