Surety Bonds Coverage

Surety bonds are different than insurance. They’re designed to guarantee a principal will act with honesty, integrity and financial responsibility and comply with a law or contract.

Surety bonds are three-way agreements where loss is not expected and premiums generally pay for pre-qualification services and the cost of underwriting. It’s similar to paying interest on a bank loan, where the interest is a fee for borrowing money and not a means of covering losses on loan defaults.


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