An agreement between three parties – a principal, an obligee, and a surety – surety bonds usually protect consumers from fraud, abuse, and penalties. Under a surety bond, if the principal defaults on the underlying contract, the obligee can make a claim against the surety. There are three types of surety bonds that are widely in demand in Florida. These bonds are:
- License bonds: Different professions that require license bonds include auto dealers, contractors, agricultural dealers, and many others. These types of bonds are necessary to operate legally.
- Contractor bonds: Construction bonds are usually required for various government and public construction projects.
- Court bonds: Court bonds are needed by the courts for various purposes.
Before providing a surety bond, surety agencies usually look at your credit score. In some cases, it is possible to get bonded even with credit issues. However, this depends on the type of bond and how severe your credit issues are. Whatever surety bond in Florida you are looking for, it is vital to understand how it works. You can get help from surety bond professionals to learn how to get bonded in Florida.