“Why Contractors Need Surety Companies” is an infographic explainingthe relationship between contractors and surety companies.Bonds, in business, are a guarantee for your customers that you will follow through with your obligations.
Contract surety bonds guarantee the performance of two parties covered by a written agreement. The most common types include bid, performance, and payment bonds.Commercial surety bonds are categorized into court judicial, license and permit, public official, and other bonds that provide guarantees of financial performance.
Other bonds like international surety bonds are for domestic and foreign companies including contract, commercial, advanced payment, warranty, and maintenance bonds.
Certain industries require surety bonds to get licensed, known as license and permit bonds.If you are in a court proceeding, the court might require you to get a Court Bond before taking further action. Court Bonds are required to ensure protection against possible losses as a result of a court proceeding. To learn more, refer to the infographic below.