States across the country require businesses to be properly bonded. A surety contract is a necessary action that protects businesses, residents and consumers. Ineffective surety contracts lead to noncompliance issues, fees, legal trouble. Working with a surety contract expert takes away any worries over surety bonds.
License And Permit Bond
License and permit bonds are typical business surety bonds. These types of surety bonds give states a way to check and control any fraud.
License and permit surety contracts include:
Businesses must be bonded before they begin to operate as a business. For example, any person or company wishing to offer travel services they must first obtain a seller of travel bond. The seller of travel bond is used as a recourse for consumers who have their money misused by a travel agent.
The same idea works for a mortgage broker bond. The mortgage broker bond is a surety contract between the broker and the state. This bond contract is a sign of good faith that the broker will abide by all state regulations. If the broker does not then the bond covers the financial impact.
Construction Surety Contract
Companies who work on government projects generally always have to set up a surety contract. Government construction projects is a good way to see how surety bonds help.
When the government works with private companies to build roads they want to avoid as much unexpected costs and delays as possible. If a contractor fails to pay their employees a lien could be issued. If a contractor repeatedly cannot meet deadlines the entire project is compromised. This is why surety bonds are used to give governments more recourse for getting the job done.
Take what’s happening in North Carolina right now. The North Carolina Department of Transportation is dealing with a contractor in default of contract. Fortunately, the state’s surety contract with the company is helping to find a new contractor without compromising the schedule.
Online Surety Bond Application
The surety bond experts at Jurisco helps businesses meet their bond obligations. As a nationwide surety bond company, Jurisco understands all state surety bond requirements. They know how to write the best surety contract while maintaining low surety bond rates.
Contact Jurisco today to get started on a surety contract. Start the online surety bond application now.