Surety Bonds

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Required by a municipality or other public body as a condition to granting a license or permit to engage in a specified activity, this bond guarantees that the party seeking the license or permit (the obligor) will comply with applicable laws or regulations. Unlike insurance that protects the insured, License and Permit Bonds do not protect the business.

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Contract bonds are guarantees that a contractor will abide by the specifications of a construction contract. A construction bond assures a project owner that a contractor will perform the work properly and pay specified subcontractors, laborers and material suppliers.

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Court bonds, also known as judicial bonds or court surety bonds, are often required in court proceedings to ensure protection from a possible loss. Probate bonds, also known as fiduciary bonds, are required by the court of a fiduciary to protect any interested parties from loss resulting from any failure of the fiduciary to faithfully perform the duties and obligations required of them by law.

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What is a Surety Bond?

A surety bond or surety 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.

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