It’s true that not everyone is going to need a surety bond. People with a business, or who are involved in a legal situation, most commonly require the services of a surety bond company.
A surety bond is a form of protection. Akin to insurance, surety bonds financially cover against a range of scenarios including court actions, business practices, government projects.
Determining Bond Necessity
Are you a landlord wanting to evict a tenant? Do you offer travel services? Is someone selling your property without consent? Just from those three quick examples, it’s easy to see how a surety bond company can play a role in a spectrum of situations.
Each state requires surety bonds so geography doesn’t prevent bond responsibility.
Commerce, Court, Construction
Often bonds are automatically required for certain businesses. A seller of travel bond is required for any individual or company offering travel services. The Small Business Association helps businesses navigate state mandates with a good list of surety bond FAQs .
Courts accept a bond from a reputable surety bond company to cover action taken by the defendant or plaintiff. For example, a replevin bond allows the plaintiff to seize property before a judgment in the case.
Construction projects are often bonded to guarantee work will be completed. A wage bond guarantees construction company employees will be paid for work. Governments also use a surety bond to allow the municipality to switch vendors/contractors if contractual obligations are not met.
Respected Surety Bond Company
No matter their necessity of the bond, it is only accepted through a respected surety bond company. Courts don’t like to take risks which is why a court mandates the bond in the first place. So choosing the wrong bond company could be a big mistake.
Every state may require surety bonds but they do not all require the same things. This means it is important to work with a surety bond company familiar with local restrictions.
Jurisco is a nationwide surety bond company with experts serving every state. That nationwide reach also helps clients by giving them lower surety bond rates. Discuss your bond necessities with a Jurisco surety bond expert.