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What is Surety?

Posted by: Insurance Place by: March 3, 2015

What is Surety?

What is a Surety? A Yearly Refresher

As a small business owner, a new year brings you plenty of new opportunities. However, with every business transaction comes a certain amount of risk. How can you protect your assets and your business’s reputation?

Even if you plan on being extra careful, some added assurance would be nice. That’s where surety comes in.

If you’ve never asked yourself, “What is a surety?” now is the perfect time to learn all there is to know. While surety bonds work great for contracting jobs, many industries can benefit from asking “What is a surety?”

Start the year off right and learn all there is to know about what is a surety, surety bond cost, and how surety can help your business succeed.

What is Surety Used For?

Surety and surety bonds work as a guarantee between you, “the principal”, and your customers, “the obligee”. The guarantee is provided by a third party, “the surety” or “the guarantor.” Surety is used to hold you accountable for completing your work and compensating your customers if you happen to fail to complete the work agreement.

Essentially, surety is used to build trust between you and the person hiring your services. As business liability insurance, surety lasts until you complete the work agreed upon.

Maybe you’re asking yourself: Why do contractors and small business owners need to know what is surety? Well, you have the most to lose if something goes wrong or you are affected by a lawsuit. For whatever reason, you might fail to deliver on customer expectations, and they can actually take you to court for it.

It pays to ask, “What is surety?” When your small business is on the line, surety helps you avoid a potential lawsuit and move on with your business.

Work Without Fear—How Surety Bonds Protect and Enhance Your Business

What is surety worth to you? How do you know what you need? As with other San Diego insurance, such as business insurance San Diego, you have options of surety to choose from. Some lines of work requires certain kinds of surety, while others benefit from having more.

However, only qualified businesses can obtain surety. These bonds act as a mark of quality, showing that you are responsible and prepared to be held liable. With surety, customers will view you as a reliable company, and will actually get you more business.

We hope we have been able to answer your questions about what is surety. Just keep this blog in mind if you need a reminder about what is a surety bond. Information like this will last all year long—and beyond! So keep it in your favorites for easy access and you won’t have to ask, “What are surety bonds good for?” again!

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