The infographic titled “A Few Types of Commercial Surety Bonds” details various types of commercial surety bonds. Commercial surety bonds are required to satisfy or guarantee governmental legislation, fiduciary obligations, and private contractual responsibilities of the applicant or the principal under the bond. The bond consists of agreements between three parties: the surety (issuer of the bond), the obligee (party the issuer represents), and the principal (party which is receiving the goods or services in the contract).
Usually required by federal and/or state courts, government bodies, financial institutions, and private corporations, commercial surety bonds protect the consumers against fraud, misrepresentation, and provide compensation of monetary loss. Some of the key types of commercial surety bonds are: federal non-contract bonds (customs bonds and excise bonds), judiciary bonds and fiduciary bonds, license and permit bonds, and public official bonds. Commercial surety bonds are generally more cost effective and do not require the principal to post collateral as security.
For more details about different types of commercial surety bonds, refer to the infographic.
