Bonds: Surety bonds are purchased by principals to protect third-parties from a failure to meet certain contractual obligations. There are four main types of Bonds;
- Contract Surety Bond: Ensures the obligations of a construction contract will be met. This can be purchased from General Contractors or Sub-Contractors as required under certain contracts.
- Commercial Surety Bond: Ensures that licensed companies will comply with all required codes. This would be purchased by licensed professionals such as electricians, plumbers.
- Fidelity Surety Bond: Protects companies and their customers from employee theft. This coverage can be purchased by companies that handle large amounts of cash or assets.