What’s the difference between a retainage bond and a subcontractor performance bond? Retainage bonds and subcontractor performance bonds are two different types of surety bonds that can be required by a property owner who is hiring a contractor to work on the real property. This article explains when each type of bond might be necessary […]
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What does it mean to be a surety bond underwriter? An insurer that specializes in bonding, particularly surety bonds. Underwriters are primarily concerned with the risk of nonpayment by the principal, whose creditworthiness is determined based on financial data from previous transactions and projected business goals. If a person claims for unemployment benefits before paying
What is the definition of a contractor? “Contractors” are self-employed individuals who run their own businesses. They may work at a variety of jobs throughout the course of a year or do the same type of employment for an extended period of time. If specific conditions are met, contractors are exempt from withholding income tax,
How can a surety bond be verified? When applying for a surety bond, an applicant must present the following documents in order for it to be validated. All parties involved, including guarantors, principals, and the bonding business, must have filled out and signed the application form. The suggested contract of work between the applicant and
What exactly does it mean to be bonded and insured? Liability insurance is what bonding is all about. It protects the bondholder (the person or corporation who ordered you to post it) in the event that the contractor fails to execute their project according to the contract’s terms, causing financial loss or harm. The bond
Is Janitorial Bonds And Insurance the Same Thing? Read More »
What is a commercial surety bond? A commercial surety bond is a written agreement by which the surety promises to pay the loss, up to the total amount of the bond, for someone who has failed to meet their legal obligations. A variety of agreements require different types of bonds, each one providing different levels
Why do contractors need to be bonded? Contractors are required to be bonded under certain circumstances. It is always better to just be safe than sorry since this protects the contractor, owner, and subcontractor. When a project starts with several contractors involved, there may be some confusion on who does what and how much money
Commercial Surety Bonds 101: Why Contractors Need to be Bonded Read More »
How much does a surety bond cost? A surety bond is a contract between an individual and a bonding company that promises the payment of a certain amount should the individual fail to fulfill their obligations. In this contract, the individual or ‘principal’ agrees to perform for a company or client, while the bonding agency
What does it mean to underwrite a surety bond? Underwriters are concerned primarily with the risk of nonpayment on the part of the principal, whose creditworthiness is judged on the basis of financial data related to past transactions and projected business plans. For example, if an individual applies for unemployment benefits before paying his employees’
Who is a contractor? “Contractors” are self-employed workers who are in business for themselves. They may work at many different jobs during a year or continue to do the same kind of work over a long period. Contractors are not subject to withholding of income tax, social security/Medicare taxes, or unemployment insurance taxes on payments