Who's On First? Learn Surety Bonding

The world of surety bonding may seem mysterious and complex. Let's face it, it's not like insurance. It's actually more similar to banking. No wonder the subject is not well understood by the very people who need to know. In this article we will cover some of the basics such as who the parties are and what they do so the subject does not seem so foreign. Who is the "insured"? The insured is the party buying insurance. Therefore, in bonding there is no insured, instead there is a "principal." This is the party whose actions the bond concerns. If your construction company needs a bond, it is the principal, the bond applicant. The intermediary who assists you with your bonding need may be a bond producer, a bonding agent, or an insurance agent. In every case, the person is licensed by the state to process surety bond transactions. 7UWQXr4H
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