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Surety bonds designed around your business needs.
A surety bond is a three-sided contractual agreement guaranteeing that a business or individual will fulfill their obligations under a contract and in accordance with business regulations.
What makes us qualified?
Empower has a wealth of resources in securing the surety bonds our clients need to help them grow their business. Whether a client wants an automatic download, needs help to develop a surety platform, or expects more than simply passing documents back and forth, we are there for as little or as much support as you need.
How can we help?
When it comes to high-demand surety needs, we help you navigate the complex terrain and carrier relationships. This includes helping you analyze and prepare the three C’s of carrier prequalification which include:
- Capital—what do your financials look like.
- Capacity—how much surety capacity does your company need to operate.
- Character—your company’s ability to get the job done.
When would a surety bond be necessary?
A surety bond is an unusual form of insurance in that one person or organization pays for it, while another receives the benefit. It’s easier to understand with an example. Imagine a contractor is building a new office building for a government agency. The agency naturally wants a guarantee that the taxpayer won’t be left out of pocket if the contractor fails to deliver the offices as promised.
Commonly requested types of surety bonds.
Whether you’re new to surety bonds or are already familiar with the process, we’re ready to guide you and help you achieve your business goals. Below is a list of common surety bonds:
- Construction Bid Bonds—a guarantee that the bid you submit for a project is accurate and will post a performance bond. If your bid is inaccurate or you can’t fulfill the obligations of your bid, a claim can be made against your bid bond which you’re responsible to pay.
- Performance Bonds—guarantee satisfactory completion of a project by a contractor.
- Customs Bonds—a requirement for an importer to comply with customs regulations and guarantees CBP is paid for applicable import duties, taxes, fines, and penalties.
- Appellate ‘Supersedeas’ Bonds—court required bond when a judgment is awarded and the defendant seeks to appeal the judgment; it guarantees future payment of the judgment.
- Fiduciary Bonds—lets you operate as a fiduciary or executor of an estate of the deceased (also known as probate, estate, or executor bonds).
- Oil and Gas bonds—various requirements depending on which area of oil and gas you work in.
- Tax and License/Permit
How do surety bonds work?
The answer is a surety bond. The contractor pays a premium to an insurer to purchase the surety bond. The insurer then pays the necessary compensation to the agency if the contractor fails to deliver. The big difference between this and ordinary insurance is that the insurer can and will go after the contractor to get this money back. The point of the surety bond is that the agency gets the assurance that it won’t have to chase after the money itself.
The difference between the principal and the obligee.
While government agencies commonly insist on a surety bond, it can work with any two organizations. The one that purchases the surety bond is “the principal,” while the one that gets any payout is “the obligee.”
If there’s anything else you need to know about surety bonds, contact us today.
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As an independent agency, we are here to help you find the right solution.
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