A Surety bond is a three-party contract between a principal, a surety company, and an obligee. The obligee requires the principal to purchase a bond from a surety company, usually as a prerequisite to obtaining a business license or beginning work on a construction project.
Bonds can also be required for various financial obligations and court cases. If the principal violates the provisions laid out on the bond form, then the obligee can file a claim against the bond and the surety company will be liable up to the full bond amount.
Unlike typical insurance policies, surety bonds are indemnified, meaning the principal must repay the surety company for all claims and associated handling expenses. Claims made against a surety bond are completely avoidable and only occur if the principal breaks the law or acts unethically.
Historically, obtaining a surety bond has been a burdensome process mired by inefficiencies such as paper applications, lengthy back and forth with underwriters and technology so outdated that it makes a typewriter look like a supercomputer.
The Laurie Insurance Group has partnered with BondExchange to make obtaining surety bonds a simple and easy process.
Through this partnership, our clients can automatically quote and issue bonds, including those subject to credit and financial review, and utilize BondExchange’s monthly “pay-as-you-go” premium model rather than paying everything up front. Our agents can also make changes to bonds automatically without having to wait for underwriter approval.