Commercial 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 bonds are also usually required on many construction projects and guarantee the payment of subcontractors and material suppliers. In the construction industry, the payment bond is usually issued along with the performance bond. A Payment Only Bond is rarely requested and is billed usually at about 50% of the regular premium.