Surety bonds involve an agreement between the principal, obligee, and surety. In simple terms, the surety is the company that guarantees the work of the principal for the obligee. A bond protects the obligee from negligence or failure to complete work on the principal’s part. Such bonds are often considered normal within business to business contracts. For that reason, businesses should hesitate to obtain these bonds when requested.
For Surety Bond Florida, businesses can obtain a bond from various insurance providers. Commercial insurance companies tend to specialize in these bonds. Limits ranging from $5,000 to increasing amounts are provided by most carriers. Of course, a higher valued bond comes at a higher premium. It’s important to compare bond options in order to avoid overspending on a given bond. Guaranty bonds protect businesses from unforeseen losses related to broken contracts or unfinished work.