If you are a contractor in California without a contract surety bond, you need to contact Lina Insurance Services immediately. Our professional agents will be more than happy to conduct an in-depth review through a series of questions that will determine the best coverage for you.
A bond or a surety is a contract made between three parties: the obligee, the principal, and the surety. The obligee is the person who is receiving the services, the principal is the party executing the services, and the surety, usually an insurance company, guarantees the principal will follow through with all contractual obligations.
If the principal fails to fulfill their obligations to the first party or obligee, the third party surety promises to pay the obligee a certain amount. The amount paid is negotiated through the principal and the surety through a premium that the principal pays. The earliest recorded instance of a surety contract dates back to a Mesopotamian tablet that was written in 2750 BC.
It is not uncommon for homeowners and business leaders to hire contractors for construction purposes. Both parties need to be protected in case of any discrepancies during the process. Several different types of contact surety bonds exist for this reason, including:
Please don’t hesitate to contact Lina Insurance Services if you have any questions about our bonds. Call us today to receive a free quote and get the ball rolling on the right bond for you and your business!