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Pennsylvania surety bonds are a financial instrument that protects businesses and individuals from financial losses in the event that a contractor or other party fails to fulfill their obligations. Surety bonds are required for a wide range of activities in Pennsylvania, including construction, public works, and service contracts.
There are many different types of surety bonds required in Pennsylvania, including:
- Contract bonds
- Bid bonds
- Performance bonds
- Payment bonds
- License and permit bonds
- Probate Bonds
- Civil Court bonds
If your license or profession has no surety bond requirement attached to it but one still wants to “be bonded”, Surety1.com offers a Business Service Bond at a very affordable price.
See our “What is a Surety Bond” Video.
See our “How does the Surety Bond Process Work” Video
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003. We also maintain an A+ rating from the Better Business Bureau.
Why are surety bonds required in Pennsylvania?
Pennsylvania Surety Bonds to protect businesses and consumers from financial losses. For example, if a contractor fails to complete a construction project on time and within budget, the surety company will be responsible for paying the costs of completing the project. Or, if a service provider fails to deliver their services as promised, the surety company will be responsible for reimbursing the customer for their losses.
Surety bonds are issued by surety companies, which are financial institutions that specialize in issuing bonds. To obtain a surety bond, the principal must submit an application to the surety company and provide information about their business or personal finances. The surety company will then assess the principal’s risk and determine the amount of the bond premium.
Surety1.com is a surety bond only agency; why this matters.
How much does surety bond cost?
The bond premium is a percentage of the bond amount and is typically paid by the principal. The bond amount is the maximum amount that the surety company will be liable for in the event that the principal fails to fulfill their obligations under the contract.
The cost of the bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150 to$250. Surety1 will shop its many markets to procure the right price at the right terms.
What is a Surety Bond?
A surety bond is a three-party contract between a principal (the party who is being bonded), an obligee (the party who requires the bond), and a surety (the company that issues the bond). The surety guarantees to the obligee that the principal will fulfill its obligations under the contract. If the principal fails to fulfill its obligations, the surety will pay the obligee for its losses, up to the amount of the bond.
Surety bonds are required for a wide range of activities, including construction projects, public works projects, service contracts, and license and permit applications. They are also required for certain court proceedings, such as probate and bankruptcy.
Pennsylvania Surety Bonds are important because they protect the obligee from financial losses in the event that the principal fails to fulfill its obligations. This can be especially important for large and complex projects, where the potential losses can be significant.
Here are some examples of how surety bonds are used:
- A construction contractor may be required to obtain a performance bond to guarantee that the project will be completed on time and within budget.
- A business owner may be required to obtain a license bond to obtain a business license.
- A fiduciary, such as a trustee or executor, may be required to obtain a fiduciary bond to protect the assets of the trust or estate.
- A defendant in a lawsuit may be required to obtain a court bond to guarantee that they will appear in court and pay any judgments that are entered against them
How to get a Pennsylvania Surety Bond
Choose your bond above for a full description and to start an application. If you encounter any questions along the way, our professional surety bond agents are ready to assist. You can email the Surety1.com team at info@surety1.com or call (877)654-2327.
Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.