What is Surety (as a concept)?
Surety is a form of credit much like how bankers extend in the form of dollars loaned or as a commitment to a loan. Bankers granting loans fully expect to have the loans repaid. The same applies to suretyship, where the surety expects to be repaid for any losses incurred as such, in addition to other requirements. Principals will be required to sign an Indemnity Agreement guaranteeing that they will pay back any losses to the Surety.
What is a Surety Bond?
A surety bond is an agreement in which one party (“a Surety”) guarantees another party’s (“the Principal’s”) performance or obligation to a third party (“the Obligee”) by issuing a surety bond.
Who is the Principal?
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The Principal is the party (such as a business or individual) who bears the primary responsibility for a bonded obligation and has the duty to perform or fulfill an obligation for the Obligee’s benefit. The Principal is the person or entity who applies for the bond.
Who is the Obligee?
The Obligee is the party to whom a bond runs in favor of and who is protected against certain types of loss if the principal defaults on its bonded obligation.
Who is the Surety? (such as The Service Insurance Company, Inc.)
The Surety is the party that is obligated to perform or fulfill the Principal’s obligation in the event of the Principal’s failure to perform.
What are the types of Surety Bonds The Service Insurance Company issues?
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Can I get a Surety Bond (Bid Bond, Performance Bond, Payment Bond, License or Permit Bond, etc.) if I have poor credit?
Yes, it is possible to get a Bid Bond, Performance Bond, Payment Bond, License or Permit Bond, etc. if your credit is poor. At The Service Insurance Company, our underwriters consider more than just credit scores when making underwriting decisions and we will work with you to evaluate what caused the poor score. If an individual or business with a negative credit score can prove that any liens and/or judgments have been satisfied, this will also be helpful.