What are Surety Bonds? Explained with Examples

Hi, Greg here of Surety Bond Authority. A surety bond basically provides a guarantee that a specific task – such as a contractor completing a building project or a travel agency using client funds to purchase elements of the itinerary – is completed to the terms of a contract or in line with laws and regulations.

If you are wondering WHAT a surety bond is, WHO are involved in it, and HOW they work, then here's a definitive explainer guide. This video is a brief introduction to surety bonds by Surety Bond Authority.

You'll get to know:
"How much a Surety Bond costs";
"The Process of getting a Surety Bond";
"How long will it take for a surety bond application to be approved";
"What are the types of Surety Bond";
"What if a claim is made on a Surety Bond"
and many more!

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I’ll be happy to answer your Surety Bond-related questions!

If you have any questions about Surety Bonds, don't hesitate to leave a comment below and I'll try my best to assist you with your queries.

Or if you prefer to explore the nature of surety bonds, its different types, how it works, and the cost and process of getting one, you could visit Surety Bond Authority's website below:

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[LLroomtempJ]

this is the 4th surety bond video i've watched and the first time the concept made sense. thank you for providing examples

[eguegueh]

You put so much effort in this video! Thank you for helping me in my studies!!!

[amobilebailbonds]

Thank you for this explanation. We're available in Houston Texas for anyone that has any questions on a free consultation for bail bonds or how to apply for a bail bond.

[allrightsreserved]

How does one obtain the bond policy number from public servants who hide them from the public?

[carlyphillips]

This made so much sense! Thank you so much!

[spazysmalls]

i think the best way to make sense of it is the bond is a form of bondage. It's like insurance but with more obligations

[joemoore]

Do public officials have surety bonds in place, in the event that they act beyond their official capacity or in violation of civil liberties?

[adriangonzalez]

Does a Seperate Bond need to be purchased for each individual project ? Or wil 1 bond cover any ? Thank you

[felixperalta]

I’m from CT, how do you find out which surety bond company a business is using so that you can file a claim?

[Beanszo]

I need to get one on my motorcycle, is there a way to pay for the bond immediately without credit? I just need to get it out of the way

[zeratul]

good explanation, 1:16 says "prinicipal" instead of principal just so you know

[LisaKerryTravelAdventures]

So surety bond is like an insurance policy?

[joelelisha]

I don't know if this is the same thing, but how would I purchase land through a trust in a bonded corperation?

[JessicaBundy]

Do you have to pay them monthly or yearly or??

[gurmanjeetsahota]

Is this bond same for canadian freight brokers too?

[israelflores]

so in other words its a way to enforce integrity ...

[shlmel]

👨🏿‍💻 In the State of Florida, Can the surety, the business or person authorized to issue surety bonds by self insuring a surety bong to him/herself or him/her surety business in the State of Florida? (please reference the florida statutes when you respond).

[Iamradthad]

Who would files the claim against the guardian in the second example?

[jimboa]

I'm not entirely sure why the principal would agree to pay for a bond that means if anything happens and the terms of the bond are broken, they end up paying even more money. I get why the whole arrangement is beneficial to the obligee and the guarantor, but what benefit does the principal get out of this whole arrangement? I see no upside for the principal, just a cost of money no matter what happens.

[anthonybrink]

Why is it so hard to say it’s like “ insurance “