Bonds & Surety
At CapriCMW, we have an experienced team of dedicated Surety Bond Advisors.
What is a Surety Bond?
Not to be confused with bonds in finance and lending, a Surety Bond is an instrument that guarantees an obligation is fully satisfied. If the obligation is not satisfied, the bond holder will be entitled to compensation for the loss of the unfulfilled obligation.
There are two primary types of Surety Bonds:
With all bonds, there is a three party relationship:
- Obligee – Entity requesting a bond, typically an owner and/or government body.
- Principal – Entity that is the responsible for fulfilling the obligation the bond guarantees, typically a contractor or licence/permit holder (your business).
- Surety – Entity that guarantees the bond, typically an insurance/bonding company.