What is a surety bond?

Surety bonds are a credit tool used to provide financial and performance guarantees in a contract. If one party (principal) fails to fulfill a contractual obligation to another party (obligee), then the surety promises to pay the obligee the bond amount. Listed below are some of the more common bonds we write in our office.

Common Types of Surety Bonds

Construction Related Bonds

  • Contractor License Bonds – Specialty and General Contractors

  • Bid Bonds

  • Performance & Payment Bonds

  • Subdivision Bonds

  • Maintenance Bonds

  • Right of Way (ROW) or Street Obstruction Bonds

  • Side Sewer ROW Bonds

Other Bonds

  • Durable Medical Equipment Suppliers (DMEPOS - Medicare) Bonds

  • ERISA Bonds (Employee Retirement Security Act) – required by law if your business handles retirement plan funds

  • Janitorial Service Bond (Fidelity Bonds)

  • Lease Bonds

  • Mortgage Broker Bond

  • Notary Bonds

  • Utility Deposit Bonds

  • Vehicle Dealer Bond

Bond Terms

  • Principal:  the person or entity that is requesting or requiring the bond

  • Obligor:  the debtor, the person or entity who is legally or contractually obliged to provide a benefit or payment to another

  • Obligee: the recipient of the benefit or payment

Ask English!



Kristie English, M.Ed.

Principal / Agent

What is the difference between a contractor’s bond and liability insurance?



The main difference has to do with which party is being protected. A bond protects the consumer or customer, up to the limit of the bond. Liability insurance protects the contractor’s business from potential lawsuits, to avoid having to pay for damages and legal fees out of pocket.


We're here to help you understand your bond options.


Call us at (833) BIG-TREE / (425) 673-7948, or use our online form to request a quote.


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This website provides only a simplified description of coverages and is not a statement of contract. Coverage may not apply in all states. For complete details of coverages, conditions, limits and losses not covered, be sure to read the policy, including all endorsements.

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