What Is A Surety Bond?
Are you asking what a surety bond is? A surety bond is a bond between 3 parties, the obligee, the principal, and the surety. The obligee is the person the bond protects, the principal is the person who needs to obtain and pay for the bond, and the surety is the entity that backs the financial responsibility of the principal. A surety bond can sometimes be compared to a form of credit extended to the principal by the surety.
In the case of a surety bond, the principal is responsible for all costs and obligations. The surety is there to guarantee to the obligee that the principal will fulfill all responsibilities.
What If The Claim Is Paid By The Surety?
The principal is required to meet all obligations set in the surety bond, financial or otherwise. Sometimes the obligee may submit claims, and it is essential that the principal handles all claims before the surety is obliged to pay out on them. If the surety pays on a claim, the principal will be required to pay the claim to the surety, along with other fees. Additionally, letting a claim fall to the surety will seriously decrease the chance of principal approval for future surety bonding.
Bail Shop, LLC Can Help
If you or someone you know are in need of a surety bond or appeal bond give the pros at Bail Shop, LLC a call. We know that attaining a bond can seem like an impossible task for clients new to bonds. Luckily, our agents have years of experience and are committed to customer service. If you have any questions or if you need advice, our experts are dedicated to helping you. Bail Shop, LLC also has agents available 24 hours a day, 7 days a week, because we know that you need help beyond just 8 am and 5 pm! We are headquartered in Lebanon, PA, and offer surety bond services to you and your family. When you need surety bond assistance, Call Bail Shop, LLC at 888-224-5711. We’re the bondsmen you can count on!