A surety bond is a promise by the surety company to pay the obligee a pre-decided amount of money if the principal fails to meet a certain obligation. The principal is the person who buys the bond from the surety company and must have a bond to do some type of work with the obligee.
The bond will outline the obligations that the principal must meet. If the principal fails to meet this obligation, the obligee can make a claim against the bond, and the surety company will have to pay the obligee for their losses. The principal will, in turn, be required to pay the surety company back.
Bonding companies and bonding agencies
A bonding company is a surety company who makes the promise on behalf of the principal. Bonding agencies can connect the principal with the most suitable surety company.
What is the process of getting a surety bond?
Applying for a surety bond Florida is like applying for a loan. First, you must find the right bonding company or agency. The company will check your credit history and ask for other information before making a final decision. Like loans, the rules are more stringent if you are applying for a large amount. People with bad credit can also buy surety if the surety company finds that the risk is worth taking, however, the premium may be expensive.