Generally, there are three parties involved: the principal, the obligee and the surety company. The principal is the party who makes a promise to perform; the obligee is the party that is bound by the contract; and the surety company is the one who answers for the principal if they cannot fulfill their duties.
There are many types of surety bonds in Texas that cover a variety of different situations. For example, contractors may need a Commercial Driveway, Sidewalk, Curb and Gutter Builder Bond to get a permit for their work. This bond is designed to financially ensure that the contractor will follow the regulations set forth in the permit and fulfill any contractual obligations that they enter into. If a contractor commits a violation, the party that is damaged can file a claim on the bond to recover damages.
Contractors who are required to obtain a surety bond in Houston typically must also have a state contractor license. In addition, they must also provide a General Liability Insurance policy that covers any damages or injuries that occur on the job site. This is necessary to protect the public from shoddy workmanship or negligent actions by the contractor.
Depending on the specific type of surety bond needed, the cost can vary greatly. This is because the underwriter of the bond will look at a variety of different factors when determining the rate, including the principalâs credit history and financial standing. A surety bond expert can help determine the exact rate that will be charged for a particular application.
Most surety bonds Texas require a premium in order to be issued.This 610 Columbia St premium is a percentage of the total bond amount. For this reason, it is very important to understand the specifics of each bond before applying for one. When purchasing a surety bond, it is recommended that the principal seek quotes from multiple providers to make sure that they are getting the best price available.
In addition to evaluating the rates that are offered, the principal should also make sure that the provider of the bond is licensed and has a good reputation in the industry.It is also recommended that the principal carefully read over all of the United States of America terms and conditions 77007 of the bond before signing it.If there is anything that they do not understand, the Subcontractor insurance solutions principal should contact the surety bond provider to obtain clarification before committing to the bond.
EZ Surety Bonds offers quick and easy (713) 906-4936 online applications for most surety bond categories in Texas. It only takes a few minutes to complete the application, and we work with individuals of all credit histories. We understand that bad things can happen to good people, and we are committed to helping our clients overcome any issues. If you need assistance obtaining a surety bond in Houston, contact us today for a free quote
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