Pinnacle Surety offers a range of surety bonds to suit all sorts of requirements, so you will be able to find the right one for you.
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Surety bonds are needed for a number of reasons; in the case of performance and payment bonds, they protect against default of a contractor. They make sure that a project is completed in line with the conditions within a contract. Other bonds can serve purposes to those in the construction industry or those involved in legal cases; these surety bonds will be discussed shortly. All in all, bonds are in place to protect a party’s finances and guard them from being a victim of fraud.
Surety bonds and insurance bonds serve quite different purposes in that a bond doesn’t provide protection for the entity who is purchasing the bond. The risk is held by a third party in this case, but insurance has two parties shouldering the risk.
Types of Surety Bonds Pinnacle Surety Offers
If you get in touch with Pinnacle Surety, you can be offered a quote for a variety of different bonds. It is important to familiarise yourself with these types, so that you can choose the right one for your case. Here are the four main types of bonds Pinnacle Surety has to offer.
Bid Bonds
When contractors and project owners commence the contract bidding process, a bid bond plays a crucial role. A bid bond needs to be obtained if you want to bid on the job. This guarantees that the bidder will actually agree to the contract if they are given the project. In addition to this, the bid bond also makes sure that the contractor has access to sufficient funds for the contract. In a way, this could be considered as a safety net for those running projects, so that they know contractors are actually interested in the potential job.
Payment Bonds
A payment bond is important for those in the construction or contracting industry too. This type of bond acts as a guarantee for employees, suppliers and subcontractors so they are guarded against non-payment. Essentially, a payment bond forms a three way agreement between the surety, owner and contractor to ensure that all subcontractors and labourers are paid upon completing the project. A subcontractor payment bond may also be used to protect the contractor themselves, so that the costs of the project can be fully covered.
Performance Bonds
A performance bond is reassurance that a project will be completed as expected. Whenever a person is hired as a contractor to carry out a job, it can be hugely beneficial to them. This type of bond ensures that the contract owner is protected in the event of a default. The failure could be caused by a number of elements, but the contractor will always be covered. The main difference between insurance and a performance bond, is that a default on the bond doesn’t give the contract owner an instant payout for their losses. When the contractor is unable to finish the job as expected, the surety bond company can open it up to a bid or the rest of the work will be completed by the bond company.
Performance and payment bonds can sometimes by tricky to distinguish. In truth, both bonds are essential when it comes to the completion of a project, but there are slight differences. A payment bond is a guarantee from the contractor to pay all suppliers and employees on a project. However, a performance bond ensures the contract owner is protected in the event of a default.
Appeal Bonds
During a current court case, a defendant may need to consider their options if they lose. Appealing to the higher court can cost a considerable amount of money, so an appeal bond can help with this. An appeal can take a long period of time to be decided on, which means the defendant often has to pay out expenses to cover the legal fees.
Now that you have an insight into the different types of surety bonds available from Pinnacle Surety, you can apply for one that suits your needs. The appeal bond will be paid to the court or third party to demonstrate intent to commit to the final ruling if the defendant then loses. This also serves as a cushion to protect the court from unnecessary appeals and dishonest activities from those simply looking to delay the process.
Why Choose Pinnacle for Your Surety Bond?
As a professional surety bond agency that is committed to our valued clients, Pinnacle Surety will always be a trustworthy option for your bonds. Unlike other multi-line agencies, Pinnacle focuses solely on surety bonds, so it has become a true specialism.
Contact Pinnacle Surety for More Information Today
With internal Surety Bond Underwriters that expedite the bonding process, you are guaranteed to get the ideal bond on time. Applying for a surety bond doesn’t need to be complicated. Consider all of the options mentioned above and you will soon be one step closer to obtaining the surety bond you need. Whether you’re looking for an appeal bond or a bid bond, our friendly team will be able to answer all of your questions right away. You can even obtain a free quote to give you complete peace of mind from the very start of the process. We have been providing quality support to our clients since 1994, so choose us for your surety bond and you can enjoy a pleasant, smooth and professional experience.
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