What Are Insurance Bonds?

Insurance bonds—also known as surety bonds—are a type of contract that guarantees a person or business will fulfill certain responsibilities or obligations. These are not savings or investment bonds—they’re about protection and trust in business transactions.

There are typically three parties involved in a bond:

• The Principal – the person or business required to get the bond
   
• The Obligee – the entity (often a government agency) requiring the bond
   
• The Surety – the insurance company that backs the bond
   

If the principal fails to meet their obligations, the surety steps in to compensate the obligee—then seeks repayment from the principal.

• Contractor Bonds – for construction jobs and bidding requirements
   
• License & Permit Bonds – for professionals needing a license to operate legally
   
• Court Bonds – required for legal proceedings
   
• Fidelity Bonds – protect businesses from employee dishonesty
   

Whether you’re a contractor bidding on a job, a business needing a license, or someone involved in a legal process—insurance bonds help build trust, meet legal requirements, and protect all parties involved.

Need a bond fast? I can walk you through the process and get you covered quickly with competitive rates.