A contract bond secures the performance of obligations under a written contract. It is available to protect public and private owners (obligees) against financial loss due to the failure or default of contractors (principals) who have a duty to perform their contracts.
The most common bonds are:
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Bid
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Performance & Payment
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Supply
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Maintenance
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Design/Build
These types of bonds are required by states, municipalities, counties, or other political bodies as a condition of granting a license to engage in business or a permit to operate a business that presents a risk to the public. There are many types of licenses and permit bonds, and it is important that you obtain the proper bond form from the appropriate authority.
Court Bonds
Court bonds are generally required in civil court proceedings when a litigant seals the special right or remedy in advance of the final court decision. The most common court bonds are:
Fiduciary Bonds
These bonds are required when a person, bank, or trust company is appointed by order of a court to administer the estate or property of a person who is unable to manage his or her own affairs. Common fiduciary bonds include:
Miscellaneous Bonds
The bonds are obligations that do not clearly fall within the scope of the other bond types. Some of these bonds are requires by statute, ordinance, or regulation. Because there are so many bonds of this kind, we suggest that you contact us for more information.
