Definition (n): A surety bond is a promise to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract. The surety bond protects the obligee against losses resulting from the principal’s failure to meet the obligation.
What types of bonds are there?
Vreeland Insurance writes them all in New Jersey. As a licensed contractor, getting bonded is critical to your business. You need to show proof that you operate your business in compliance with New Jersey state or local government rules and regulations. We’re New Jersey Surety bond specialists, and through our relationships with large, respected bonding companies to give our clients the best rates. We can provide you with bid, performance, payment bonds, and much more so that you have all the forms and coverages needed to get a job.
Why do I need a Surety Bond to Insure Them?
The main answer is because the obligee is requiring it in order to conduct business. The bond is more for the obligee than you. If you are in need of a commercial bond then it is not in place to cover you, but anyone you will be doing business with. Contract bonds are in place to guarantee the work will be completed to the terms of the contract.
If you have any questions regarding surety bonds in New Jersey, give Vreeland Insurance a call. We are happy to elaborate. (877) 709-6761