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Frequently Asked Questions

Question: What is a Surety Bond?

Answer: A surety bond is a written agreement where one party, the surety, obligates itself to a second party, the obligee, to answer for the default of a third party, the principal.

Question: What is the Purpose of a Surety Bond?

Answer: The purpose of a surety bond is to protect public and private interests against financial loss. Therefore, the surety bonding company must be profitable and must have a strong balance sheet. No one is likely to accept the guarantee of a party with a bad name or a weak balance sheet. The surety bonding company guarantees performance. Its good name and its balance sheet back up that guarantee.

Question: What does a Surety bond cost?

Answer: This is a commonly asked question, but is difficult to answer because surety bond premiums vary from one surety to another. In general a surety bond premium can range from half of one percent to two percent of the bond amount.

 

For additional questions regarding surety bonds and how they can benefit you please email us at support@moorishrepublic.com