As a business man or a contractor, you might need to buy Surety Bonds to be able to carry out your business. The given Infographic will help you to understand all aspects of it. This Infographic is
designed by the Nielson Hoover & Company, one of the largest independently owned Surety agencies in America.
Surety Bonds involve three parties:
• The Principal: The party that needs to buy a Surety Bond to
carry out its business is known as the Principal. The principal is generally a project owner or a Businessman who buys these bonds to authenticate his credibility.
• The Obligee: The Obligee is the recipient of the obligation.
It is generally state or federal government that demands a Surety Bond from the Principal.
• Surety: It is the insurance company that reimburses the
damages in the case; Principal fails to comply with his duties. The reimbursed amount is equal to the monetary amount mentioned in the bond. The insurance company, later on, recovers the amount
from the Principal.
There are many benefits of buying surety Bonds. It helps the contractors to enhance their market reputation
and getting more projects in the future. You can know more about the benefits of Buying Surety bonds by looking at the Infographic.