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. �
The given Infographic delineates the seven most popular commercial surety bonds. It is designed and presented by Suretegrity, an online bonding agency in America.
In most of the states, surety bonds are required as a prerequisite to carry out certain business activities. The purpose is to ensure that the concerned taxes are paid by the dealers, and manufacturers of the products.
One of the most popular and necessary surety bonds is Alcoholic beverages & tobacco tax surety bond. This bond is required by the local or state government to allow the manufacturers, wholesalers and dealers of Alcoholic beverages to get licensed. Alcoholic beverages involve high risks and high taxes, therefore before granting the License, the government makes sure that the person is capable of handling the responsibility. The surety company before handing out the bond to the applicant does its own exhaustive scrutiny and makes sure that the applicant is capable of handling high-risk business.
Agricultural & Citrus Surety Bond, Contractor’s License Surety Bond, Auto Dealer Surety Bond are other types of Surety Bonds.
The cost of buying surety bond varies and depends on a number of factors such as the Bond type, risk level of the applicant, duration and amount of the bond.
You can gather more information in this regard by visiting www.suretegrity.com
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