Surety Bonds

AIS Business Specialists Helping You Meet Requirements

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Surety Bonds are often confused with Security Bonds or misunderstood in the purpose they serve and the role of each party involved. Nonetheless, surety bonds are required from businesses from time to time.

What is a Surety Bond?

Surety Bonds involve three parties: the one requesting the Surety Bond, the one who purchases the Surety Bond, and the insurance company guaranteeing the principal of the bond. A Surety Bond is obtained as a guarantee that protects the party requesting the bond.

The Basics of Surety Bonds

Different from traditional insurance, the Surety Bond is a guarantee that protects another party. Think of it as buying insurance for someone else, making them the beneficiary and allowing them to file a claim should the terms of your contract agreement not be met.

Surety Bonds-The Principal

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Surety Bonds-The Surety

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Surety Bonds-The Obligee

The Principal

The Surety

The Obligee

The party who purchases the bond

The party (insurance company) who guarantees the Principal’s fulfilment of obligations to Obligee

The party requiring the bond

Who Needs This Coverage?

Small, medium and large businesses may need to purchase Surety Bonds depending on their state laws and the type of contract they are entering. Chances are that the party you are entering into a contract with will request a Surety Bond from you if needed. There are literally thousands of different bond types throughout the US, so your best resource is a knowledgeable Business Insurance Specialist. Below are some examples of those who need Contract Bonds and Commercial Bonds:

Contract Bonds

Commercial Bond

Construction management

Bid, Performance and Payment, and Supply


Court Customs

General construction

License & Permit



Heavy infrastructure


Power generation



Public Official


Regulatory and tax

Let's Get You Your Surety Bond

Surety Bonds are a specialized product required for many businesses. Have peace of mind by knowing that AIS Business Specialists are ready to assist you in finding the Surety Bond your business needs. Call us today at (866) 570-7335.

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