Commercial Surety Bonds and Contract Surety Bonds guarantee performance of obligations assumed by a Contractor for performance of their agreed contract such as completion dates, quality standards and cost control.
License Bonds are required by your jurisdiction to hold a specific type of License or Certification. For Example, Notary, Home Healthcare, Contractor, Private Investigator, Lottery, Janitorial and Mortgage Broker.
Performance Bonds guarantee for the satisfactory completion of a project. This will require having a collateral property or investment to back up the requirements of the surety agency. A performance bond is usually issued by a bank or an insurance company, both of which act as a “surety.” Payment bond are required on many construction projects.
In the construction industry, the payment bond is usually issued along with the performance bond. The payment bond forms a three-way contract between the Owner, the contractor and the surety, to make sure that all sub-contractors, laborers, and material suppliers will be paid leaving the project lien free. A Payment Only Bond is rarely requested and is billed usually at about 50% of the regular premium.