Maine Surety Bond Types
Surety bonds are known for the great protection they offer both businesses and their customers. Maine offers many different types of surety bonds to be used as protection by businesses or individuals in a variety of industries. Generally speaking, surety bonds are used to keep individuals or businesses from participating in fraudulent activities that take advantage of their customers.However, surety bonds offer many other benefits as well.
When an individual or business enters into a contract with a customer, a surety bond is often required to ensure that the business, or principal, completes all aspects of the job. The surety issues a bond to the principal, which holds it financially accountable to its customer, who is also called the obligee. Once the bond is issued, the surety obligates the principal to fulfill the contract. If the principal fails to carry out its duties, then the obligee may seek compensation up to the bond’s full amount.
Your Maine Surety Bond Company
The Maine state government requires many different types of businesses to obtain various surety bonds, most of which protect consumers. One such bond is the insurance broker’s license bond. This bond binds the principal, an insurance broker, to the state. The bond’s purpose is to guarantee the broker does honest and adequate work and avoids fraudulent and unethical activities.
Although many people get themselves or their business bonded because the government requires them to do so, surety bonds are actually available to anybody who would like extra protection for his or her business. Acquiring a surety bond without being required to is just as easy and just as beneficial. Bonds are also good to have because they increase the confidence a potential customer will have in you and your business. Customers will have a greater respect for you and your business since you have taken an interest in taking care of your customers.
You can find resources online to help you determine which type of bond is best for you and your business. If you’re unsure what bond would best fit your needs, contacting a surety bond specialists is also easy to do. A specialist will work to get the best bond for you and your needs. Applying for a bond only takes a matter of minutes and you can get a quote back within a few days. After you secure a bond you’ll feel much better about the legitimacy of your business, and so will your customers.