BONDS

Surety Bonds Available at Great Rates

Valley Surety Insurance Agency provides surety bonds to help clients meet legal requirements. The type of bond required varies from business to business. Look to us for guidance on which type of bond to buy. While we are helping you to obtain the right surety bond, we'll make sure to get you bonded at the best rate possible.

To schedule a surety bond consultation or get more information, call us today at 916-567-6676.

What is a Surety Bond?

Surety bonds are contractual agreements between a principal, an obligee, and a surety. The bond is designed to guarantee that the individual or business will meet their obligations. The surety is the company that is providing the financial guarantee that you will meet your obligations. The obligee is the party requiring the bond.

If the principal fails to meet specified terms, the surety pays the obligee to cover losses the obligee may have incurred because of the principal.
Sacramento — Construction Workers Checking The Plan in Sacramento, CA

Types of Surety Bonds Available

Our surety bond agency sources a variety of bonds to cover the needs of contractors in varying industries.

Contract Bonds:

These bonds guarantee that a business that has been awarded a contract will meet that contract's terms and obligations.

Subdivision Bonds

This type of bond is a guarantee to a local or state government that the principal, the business holding the bond, will complete required public land improvements.

License & Permit Bonds

These bonds are required for any business seeking a license and permit to perform contract work. License & permit bonds guarantee the licensed and permitted business will perform work to standards required by federal, state, and/or local regulations.

Court Bonds

Court bonds guarantee that a party will comply with rules set by a court. This type of bond covers situations like probate court and immigration bonds.

SBA Bond Guarantee Program

The SBA Bond Guarantee Program is there for the small and emerging contractor to become bondable or the contractor who needs to increase his bonding and can't without some form of assistance. 

What is The Difference Between a Surety Bond and Insurance

A bond guarantees the fulfillment of a legal obligation. It's a three-party agreement where the third party (surety company) guarantees to a second party (obligee or owner) the successful performance of the first party (principal). One of the primary uses of bonds today is to protect public and private funds from financial loss.

A surety bond is not an insurance policy. An insurance policy assumes that there will be a loss, so the premium for an insurance policy is calculated to cover losses that will occur. A bond, on the other hand, is an extension of credit with the assumption that the legal obligation will be fulfilled, and consequently, there will be no loss. The bond premium paid to the surety covers only the underwriting expenses of the surety company. When losses occur, they have a significant impact on the surety company's financial results. The surety seeks reimbursement from the principal to cover and losses incurred, plus attorney fees and court costs, per the indemnification agreement.

Get a Surety Bond in Sacramento or Anywhere in California

Valley Surety Insurance Agency was created to make getting these bonds easier.
If you need to be bonded in California, call 916-567-6676 today.
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