What is Surety ?
What exactly does surety mean? Surety is a noun the definition of the word surety is: a guarantor who binds themselves to another’s obligations and pledges that their obligations will be met in case the principal is in default. The term surety has been around for thousands of years it is actually the oldest form of insurance. Having a Surety Bond or someone acting as a surety is different than having Insurance, with insurance if you have a claim the insurance company pays the claim minus your deductable. In addition, the Insurance Company is indemnifying you restoring you to the financial position you were once at before the time of the loss. With Surety, it is reverse for one there is no deductible. In addition, if someone is acting as a Surety for you and a claim occurs, you must restore the surety to the financial position it once was at before the time of the loss or claim. Because you are indemnifying the surety company not the surety indemnifying you. With Insurance you can change your insurance limits but with surety bonds you can not the bond amount is set by the obligee. With insurance you can also purchase option coverage’s such as coverage for employees stealing from you. With surety bonds there are no option coverage’s since the bond is drafted by the obligee
You can learn more about surety bonds, the surety industry the cost of surety bonds as well as other Surety Bond related issues though our website. If you have any questions in regards to a particular surety bond please contact us