Modern Family Insurance Agency Inc Logo
Get A Quote
Facebook Twitter LinkedIn Yelp* Google Places Blog RSS Feed
Call Us Today: 770-928-9122
Auto Insurance
Home Insurance
Business Insurance
Life and Health Insurance
Quote Center
First Name Last Name
Email:
Phone:
Zip:
Interest:
Real Time Quotes
Refer a Friend

Surety Bonds

Get a Quote
What is a Surety Bond?
Websters dictionary defines a Surety Bond as "a bond guaranteeing performance of a contract or obligation."  That simple definition is at the base of a specialized and detailed series of agreements with roots as old as civilzation.  Surety bonds may come under different names such as license, contract, public official judicial or miscellaneous bonds
.  
Where do surety bonds come from?
The original Surety guarantee was by individuals, one friend stood surety for another.  This type of personal surety guarantee is totally inadequate to meet the needs of the modern world.  For over one hundred years corporate Surety companies have provided a wide range of Surety bond guarantees.   Although Surety bonds are generally written by insurance companies and are regulated by state insurance departments, Surety bonds are not insurance.  Surety bonds more closely resemble loan guarantees given by banks.  

How does a surety bond work?

A Surety bond is a guarantee involving three parties, the Principal, the Obligee, and the Surety company.  The Principal is the person or business with an obligation to perform.  The Obligee is the person, company or governmental unit requiring the guarantee.  The Surety company provides the bond to guarantee that the Principal fulfills their obligation to the Obligee.  As long as the Principal performs their obligation the Surety company has no role.  The best Surety bond situation is when the Principal fulfills their obligation, the Obligee is satisfied and the Surety company takes no part in fulfillling those obligations.  If the Principal does not do what is required, the Surety company has to meet the obligations.  If this happens, the Surety company is entitled to be reimbursed for losses  and costs by the Principal.  Before a bond is written, the Surety company will require the Principal to provide an indemnity agreement from the business and may also require the personal indemnity from the Principal.  

Why are License and Permit Bonds required?
Laws, ordinances, and regulations are enacted by government to set rules by which a business can operate safely and honestly. Bonds help to strengthen these  laws by protecting the public against financial loss due to unlawful or imporper acts by the buisness being required to have a license. Requiring a license bond puts teeth into the law by providing for a penalty when the business doesn't meet their obligations.  
The public good is also protected by eliminating the need for each business to be investigated by the city, county or state.  This would add a great deal of red tape each time a business needed a license.  We provide through a network of companies license bonds with as little red tape as possible.  We want to make it easy to write your license bonds.

What types of license bonds are required?  
Compliance Bonds  These bonds guarantee that the Principal will comply with the law requiring  the bond.  They may be required for almost any type of business including contractors, street vendors, junk dealers, garages or any of hundreds of other businesses.  
Financial Guarantees  These bonds protect against the loss of money entrusted to the Principal.  These may be for a real estate broker, an auctioneer, a collection agency or other types of businesses.  
Tax Payment Guarantees   These bonds are for various types of business that owe taxes to the government.   From federal excise taxes to alcohol manufacturers to gasoline taxes for wholesale distributors, these bonds areneeded to provide guarantees to federal, state and local units of government.  

How do I get a License and Permit Bond?
Your Modern Family Insurance Agency will take the information needed to get your bond.  The more the Surety knows about an applicant and their needs, the more quickly the bond can be issued.  The names of banks used for depositis and recent audits of the governmental unit are information sources that assure timely turnaround of the bond.  




1001 Weatherstone Pkwy Ste 440 Woodstock, GA 30188 | Phone: 770-928-9122 | Email Us | Get Map