Bonds

Bonds are an important piece of the business insurance package, having a bond allows a business owner to assure customers of the business' integrity and ability to fulfill their contracted obligations.

A surety bond is a contract among at least three parties:

  • The obligee - the party who is the recipient of an obligation,
  • The principal - the primary party who will be performing the contractual obligation,
  • The surety- who assures the obligee that the principal can perform the task

Through a surety bond, the surety agrees to uphold — for the benefit of the obligee — the contractual promises (obligations) made by the principal if the principal fails to uphold its promises to the obligee. The contract is formed so as to induce the obligee to contract with the principal, i.e., to demonstrate the credibility of the principal and guarantee performance and completion per the terms of the agreement.

Contact High Desert Insurance for further assistance with your surety bond needs.