- March 21, 2017
- Posted by: Surety Bond Experts
- Categories: Surety Bond, Surety Bond History
In one of our recent blogs, we discussed the history of surety bonds. The main reason that surety bonds have been around for centuries is that they are a benefit to everyone. A surety bond protects the taxpayers, clients or customers from contractual violations. They also give the obligee a recourse to recover damages. Finally, the principal benefits because they are able to prove that they are ethical and trustworthy. Let us delve deeper into some other benefits of being bonded:
- If the principal is bonded, then that is proof that they are trustworthy. It is a way for them to prove that they have the financial backing and strong application to achieve industrial standards.
- A principal is more likely to be aware of the consequences of a contractual violation. This assures the customer or client that they are entering a business agreement with a competent party.
- This in turn, gives the principal more business. Word of mouth, and the word “bonded” are an extra stamp of approval and assurance.
- Working with a surety bond producer and underwriter gives the principal a resource for additional business knowledge.
- In the case of a customer or client filing a claim, the principal has a recourse to plead their case. The surety bond producer acts as an objective party and looks into the claim.
Surety bonds have withstood the test of time. Going back to the Code of Hammurabi, civilizations have been using surety bonds. They have helped to ensure that sound business practices are in place. They have also built trust between the surety, the principal and the obligee.
We here, at GotSuretyBonds.com are an independent bond-only agency. We are committed to the principles of service, integrity and professionalism. We view our clients, employees and underwriters as our “business family”. We strive to offer each one of our clients unsurpassed attention. We strive to provide support to ensure a mutually beneficial relationship. Success for everyone involved is only possible through helping all of our constituents achieve their objectives. We believe that a satisfied customer, employee or vendor is the best business strategy of all. Our surety bonding services help create a blueprint for success. Our principals have relationships nationwide and have earned the trust of underwriters. We are able to act as powerful advocates for our clients because our credibility within the underwriting community has withstood the test of time. We have a unique, tactical process to professionally design and present a thorough financial picture with risk and financial analyses to the surety market.