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Bonds play an important role in protecting individuals, organizations, and the government against loss through the failure of others to fulfill specific obligations. Generally, bonds are required of those who administer public or private funds, and of individuals and businesses to qualify for licenses and permits.
The main type of bond is a Surety Bond, which is basically a three-party contract — one party agrees to be held responsible to a second party for the obligations of a third party (the principal). A Surety Bond guarantees monetary compensation or the satisfactory completion of an obligation by the surety should the principal fail to perform specific acts within a stated period of time.
Surety Bonds include Contract Bonds, Court Bonds, License and Permit Bonds, and Public Official Bonds.
For more information, contact a Timmerman Insurance Broker today!
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