Financial Guarantee Bond – Apply Now
A financial guarantee bond can be difficult for an applicant to obtain approval for. But, with the right expertise from a surety bond producer, it can be done with very little hassle. These bonds encompass a large number of different types of bonds where the only remedy is straight financial payment. Learn more below, or request a quote today. What Is A Financial Guarantee Bond? A financial bond is an indemnity bond which cannot be cancelled. In the case that the principal cannot perform their contractual obligations, it ensures that they will reimburse the obligee for the violation. Some examples of a financial guarantee bond are tax bonds, Medicare and Medicaid bonds. Because of the complexity of these bonds, they can be extremely hazardous. Therefore, they are carefully underwritten. Generally, the insurance company guarantees that the business bonded pays the principal and interest according to the contractual agreement or promissory note. Due to the complexity of financial guarantee bonds, it is a customary recommendation that the surety producer familiarizes themselves with the specific requirements. Factors Impacting Cost A commercial bond application: This provides general information and may help the surety bond producer determine the bond amount, who is asking for...
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