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What Is A Surety Bond
A surety bond is required by law for businesses in every
state in numerous industries. In its most simple sense, a surety bond is
a guarantee. It is a three-party agreement between you (the Principal), the Surety
and the entity requiring you to obtain a bond (the Obligee). A surety bond guarantees
that you will comply with certain rules or regulations, pay someone, or perform
according to a contract. If, for any reason, you do not live up to the agreement,
the Surety will step in on your behalf and then come back to you for restitution.
A surety bond often works as a prequalification tool to ensure that you meet certain
business standards.
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