A surety bond is defined as a three-party agreement that legally binds together a principal who needs the bond, an obligee who requires the bond and a surety company that sells the bond. If the principal fails to perform in this manner, the bond will cover resulting damages or losses.
Does State Farm do surety bonds?
A fidelity bond or surety bond can help protect the interests of your growing business. At State Farm ®, we combine the financial strength of our full service commercial Surety and Fidelity Bond Department along with more than 18,000 local agents to provide you and your business professional with superior service.
How much is a 5000 surety bond worth?
A $5,000 surety bond can cost as little as $100 for applicants with a good credit score, or go as high as $500 for applicants with bad credit. As you can see, premiums for applicants with good credit are no more than 2. 5%.
Why would I need a surety bond?
At its simplest, a surety bond requires the surety to pay a set amount of money to the obligee if a principal fails to perform a contractual obligation. It also helps principals, typically small contractors, compete for contracts by reassuring customers that they will receive the product or service promised.
Can a felon get a surety bond?
Many felons cannot be bonded. A bond is an insurance policy that protects an employer against money or property loss due to employee dishonesty. Certain criminal convictions make many felons ineligible for bonding by private companies. Unfortunately, self-employed persons cannot be covered by these Fidelity Bonds. Oct 7, 2015