At Smart Insurance, we issue many different types of bonds including public official bonds, notary public bonds, license & permit bonds, motor vehicle dealer bonds, sales tax bonds, and contract bonds including bid, performance, and payment bonds.
Contract bonds guarantee the contractor's completion of the agreed upon work, price & completion time.
A performance bond is a surety bond issued by an insurance company to guarantee satisfactory completion or performance of a project by a contractor. These are generally three party agreements as outlined below:
Principal ‐ Contractor being hired to perform under a certain contractual agreement.
Obligee ‐ Party for whom the bond will benefit in the event of a contractual default.
Surety ‐ Guarantor, generally an insurance company.