What is a Surety Bond?
A Surety Bond is a generic name for all bonds. Bonds are usually required by the State or Federal Government. Reeder Insurance specializes in Colorado surety bonds. Surety bonds are three-party agreements in which the issuer of the bond (the surety) joins with the second party (the principal) in guaranteeing to a third party (the obligee) the fulfillment of an obligation on the part of the principal. The purpose of a surety bond is to protect public and private interests against financial loss. A surety bond is usually required for monetary compensation for failure to perform specified acts referenced in the Bond Form.
There are three parts of a Surety Bond:
Part 1 – The Obligee. They are the entity requiring the Bond.
Part 2 – The Principal. The Principal is the person whom will perform the contractual obligations set forth in the Bond Form.
Part 3 – The Surety Company. They are the entity who will be insuring the principal of the obligations referenced in the Bond Form.
Reeder Insurance offers a wide range of commercial bonds, public official bonds, contract bonds, fidelity bonds, motor vehicle dealer bonds, certificate of title and more in Colorado.