Surety & Bonds

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As a business owner you are probably asked to guarantee something at some point.  Completion of a contract, and payment to a vendor or municipality are just some of the guarantees you are asked to make.

 What is a Surety Bond?

• A surety bond is a three-party agreement involving the principal (your business), the obligee (the party requiring the bond), and the surety (the company issuing the bond). It guarantees that your business will fulfill its obligations as specified in the bond agreement.

Types of Surety Bonds:

• Contract Bonds: Ensure the fulfillment of contractual obligations.
  • Bid Bonds: Guarantee that the bidder will enter into the contract if awarded.
  • Performance Bonds: Ensure the project is completed according to the contract terms.
  • Payment Bonds: Guarantee that subcontractors and suppliers will be paid.
• Commercial Bonds: Required by law for certain businesses and professionals.
  • License and Permit Bonds: Required for obtaining a business license or permit.
  • Court Bonds: Required in legal proceedings, such as appeal bonds or probate bonds.
• Fidelity Bonds: Protect against employee dishonesty or fraud.
  • Employee Theft Bonds: Cover losses due to employee theft or fraud.

 Qualification Process:

• Evaluation of your business’s financial strength, credit history, and industry experience.
• Review of the specific obligations and risks associated with the bond.

Factors Considered:

• Financial Statements: Demonstrating your business’s financial stability.
• Credit Score: Reflecting your creditworthiness.
• Business Experience: Indicating your track record and industry expertise.

 Financial Exposure:

• The surety expects to be reimbursed for any claims paid on your behalf, which can affect your business’s finances and credit.

Reputation:

• Fulfilling bond obligations maintains your business’s reputation and credibility. Failure to do so can harm relationships with clients, vendors, and regulators.

Expert Guidance:

• Our knowledgeable team helps you navigate the complexities of surety bonds, ensuring you understand the requirements and implications.

Strong Relationships:

• We have strong relationships with leading surety companies, allowing us to secure the best terms and rates for your bonds.

Customized Solutions:

• We tailor bond solutions to meet your specific business needs, whether you require a single bond or a comprehensive bonding program.

Ongoing Support:

• We provide continuous support, from the initial application to renewal and claim processes, ensuring your bonding needs are consistently met.

Contact RBA to learn all you need to know about surety and bonds. Our team of experts is ready to assist you in securing the bonds you need to operate and grow your business with confidence.