Bonds Quote Forms
Looking for business insurance coverage in Oklahoma City (including surrounding Metro areas), Tulsa, Lawton, Muskogee and Throughout Oklahoma? Click any of the following links to submit a quote for quick, accurate and affordable rates or for more information on coverage options.
What is a bond?
A surety bond is a promise by a surety or guarantor to pay one party (the obligee) a certain amount if a second party (the principal)
fails to meet some obligation, such as fulfilling the terms of a
contract. The surety bond protects the obligee against losses resulting
from the principal's failure to meet the obligation.
A surety bond is defined as 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 perform 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
guaranty performance and completion per the terms of the agreement.
The principal will pay a premium in exchange for
the bonding company's financial strength to extend surety credit. In the
event of a claim, the surety will investigate it. If it turns out to be
a valid claim, the surety will pay and then turn to the principal for
reimbursement of the amount paid on the claim and any legal fees
incurred. In some cases, the principal has a cause of action against another party for the principal's loss, and the surety will have a right of subrogation the principal and recover damages to make up for the payment to the principal.
Some bonds we handle include, but are not limited to, the following:
- Contract performance bonds
- Bid bonds
- Maintenance bonds
- Payment bonds
- Supply bonds
- License and permit bonds
- Miscellaneous bonds
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Contact us today, and we can answer any questions you have about bond insurance.