Surety Bonds

Whether you’re an individual seeking a particular type of bond, or run a business with a variety of bonding requirements, TransGlobal P&C Insurance Agency is staffed with professional agents to provide the insurance solution for your business and tailored to your needs.

How do Surety Bonds work?

There are 3 parties involve together in a mutual, legally binding contact to guarantee that a specific tasks are fulfilled.

1. The Principal – is the individual or business that purchases the bond to guarantee future work performance.
2. The Obligee – is the entity that requires the bond and expects principal to perform and meet the contractual requirements.
3. Surety – is the insurance company that backs the bond and guarantees payment to obligee if principal fails to meet contractual requirements.

Type of Surety Bond

There are commercial surety bond and contract bonds.

Commercial surety bond includes numerous type of bonds categorized as

• License and Permit
• Court Fiduciary
• Public Official
• Notary
• Depository Bond
• Custom Bond
• Court Judicial
• ERISA Fidelity
• Lost Instrument
• Release of Lien
• Utilities
• Construction Material Supply

and many miscellaneous bonds that include guarantees of financial performance.

Who would need commercial surety bond?

Individuals, nonprofits, associations and franchises in the business for industry of financial institutions, retailer, healthcare industry, servicing contractors, public utilities, transportation industry, telecommunication industry, technology industry and coal/mining industry.

Contract bonds guarantee the performance of obligations covered by a written agreement between two parties. The most common types of contract bond are Bid, Performance and Payment Bonds. For any type of government work done through a contracting company, a contract bond is required to offer protection in case the contractor fails to meet the contract requirements. The contract bond will cover a certain monetary amount based on the agreed contract.

Who would need contract bond?

General contractors and construction managers, Prime subcontractor trade, mechanical and electrical, road and bridge builders, paving contractors, utility, water and sewer line contractors.

TransGlobal P&C Insurance Agency is here to make your experience in purchasing bond easier. Give us a call today, we are ready to provide professional assistance to your needs.