Surety Bonds provided by Browne Insurance Services

To run your business, you need guarantees for contracts and other financial obligations. A surety bond is a promise to be liable for the debt, default, or failure of another. It is a three-party contract by which one party (the surety) guarantees the performance or obligations of a second party (the principal) to a third party (the obligee).
Type of Surety Bonds

The surety bond provides a guarantee to the obligee that the principal will conduct themselves per the terms outlined in the surety bond.

Surety bonds are legally binding contracts that ensure obligations will be met between three parties:

  1. The principal: whoever needs the bond
  2. The obligee: the one requiring the bond
  3. The surety: the insurance company guaranteeing the principal can fulfill the obligation
Functions of Bonds
Type of Surety Bonds

There are two main categories of surety bond: Contract Bonds and Commercial Bonds. Contract bonds guarantee a specific contract. Examples include Performance Bonds, Bid Bonds, Supply bonds, Maintenance Bonds and Subdivision Bonds. Commercial Bonds guarantee per the terms of the bond form.

When Do You Need a Surety Bond?

Surety bonds are typically required for contractors who seek to work on government contracts. They are also required for persons and companies that are licensed by a governmental entity. Even when not compulsory, surety bonds make sense when a contract requires performance, because they help compensate obligees when principals fail to meet their contractual obligations. They do not make sense if the amount of possible damages is negligible.

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As an independent agency, Browne Insurance Services
Helps you find the right Surety Bonds Coverage
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Palm Springs, CA
190 W Amado Rd Palm Springs, CA 92262
We extend coverage to individuals and businesses in Campbell, Palm Desert, Palm Springs, Pollock Pines, and Santa Clara areas.

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  • Failure to complete a project
  • License / permit requirements
  • Failure to meet standards / regulations
  • Employee theft

Failure to complete a project coverage

Risk Factors

A contractor might start a project but fail to complete it due to some reasons.

Solution

Surety bonds can be taken to guarantee that an insurance company will reimburse your client when your business fails to complete a project or fulfil a contract.

License / permit requirements coverage

Risk Factors

You may need a valid license or permit to apply for a particular project which can only be taken you get your license.

Solution

If you have surety bonds, you can get your license / permit on its security.

Failure to meet standards / regulations coverage

Risk Factors

A contractor might get booked for not meeting the standards of his work as promised.

Solution

Surety bonds can be taken to guarantee that an insurance company will reimburse your client when your business fails to meet its standards.

Employee theft coverage

Risk Factors

If any of your worker / employee steals anything on the construction site, you may suffer a loss.

Solution

Surety bonds can be taken to reimburse the loss when your employee does something like this while on work.

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