So, your attorney calls to inform you that you are facing a bond requirement. You are confused. Since you are not in jail, there’s no need for a bail bond, and James Bond is the only other bond that immediately comes to mind!
Ironically, there are thousands of surety bonds, but most people are unfamiliar with this three-party agreement that is designed to guarantee a principal’s (the #1 party, which is likely you or your business) integrity, honesty, performance, and financial responsibility, as well as compliance with a law or contract.
So, who are the other two parties involved in this three-party agreement and what is it that requires I get a bond? Here are a few of the more common situations that use commercial surety bonds to lessen the risk of loss to the obligee (the #2 party, who is requiring the bond) by the third-party guarantor (the # 3 party, which is a corporate surety company, typically an A-rated insurance company).
What do I do next? That’s the easy part! Contact an AssuredPartners office that specializes in surety bonds. Our experienced staff will walk you through the process and make sure you get the right bond for your need.
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