Surety bonds are described as the legal bond that ensure obligations between three parties, The first one is principal party, who needs these bonds, the second one is obligator who requires this bond and last one is surety party means insurance company which guarantees the principal party to fulfill the required amount of bond to the obligators. Sometimes, people misunderstand the surety bonds, they think that their aim is different for what they are coming. You can purchase this bond from surety bond agency they can issue various kind of bonds for their clients in market including surety bond, so you can easily purchase it from these agencies.
What are surety bonds?
Surety bonds serves as the insurance policy issued for the required person. Obligee is like a government agency and the bonds are kept in it as the security of government assets. In the case of surety bonds, there is a huge requirement of principal party too for paying the amount of the surety bonds. The prices of the bonds vary according to the policy and company size and its date of maturity also differs from other bonds.
Types of surety bonds
There are various types of surety bonds present in the market that are issued for you. Some of them are given below-
Custodian bonds – It is also called the custodial and importing bonds. These bonds are required in the import and export activities. These bonds are issued or contracted for protecting your goods from lot of damages that can arise during importing your products.
Court bonds – Having these bonds are very necessary to protect yourself by the results of court activities. Having these bonds in your company you can easily avoid the uncertain risks of business and protect your business from several court proceedings and hinderances.