SURETY BONDS
Building a Safety Net
A surety bond is a three-way guarantee that ensures a project or obligation is fulfilled. It acts like a financial safety net.
What is a Surety Bond?
A surety bond is a three-way guarantee that ensures a project or obligation is fulfilled.
It acts like a financial safety net for the following parties:
The Principal: You, the business owner who needs the bond to perform a service or comply with regulations.
The Obligee: The government agency, client, or other party requiring the bond.
The Surety: One Mind Insurance Brokers, acting on your behalf to secure the bond from a reputable surety company.
How Does it Work?
The surety company assesses your creditworthiness and sets a bond amount. If you fail to meet your obligations, the obligee can file a claim against the bond. We'll work with the surety company to resolve the claim, which may involve:
Financial Reimbursement: The surety company pays the obligee up to the bonded amount to cover damages.
Project Completion: The surety company arranges for another contractor to finish the job if you default.
Benefits of Surety Bonds
Increased Credibility: Surety bonds demonstrate your commitment to professionalism and project completion.
Win More Contracts: Many contracts require surety bonds, giving you a competitive edge in bidding.
Peace of Mind: Knowing you're protected from financial penalties for non-performance gives you and your clients peace of mind.