South Carolina Surety Bond Types
Many states require their businesses to secure a surety bond as a means of ensuring that they fulfill their contractual obligations. Surety bonds in South Carolina vary in amounts depending on the type of bond and the individual characteristics of each business. When entering into a surety bond contract three parties are present: the principal, the obligee and the surety. The principal is the company intending to conduct business from which the obligee receives benefits. They surety acts as a protective measure that guarantees the principal will fulfill its contractual obligations. Because a surety bond has been secured, if the principal fails to complete its duties the obligee may seek reimbursement for hard done.
In 2006, twenty-four percent of South Dakota was classified as rural, which explains why agriculture is such an important industry to the state. One of the most significant bonds required by the state is a Dealers and Handlers of Agricultural Products Bond. Anyone who purchases products (except tobacco, cotton, dairy, or timber) from the producer or farmer and pays with something other than cash must be licensed and bonded. This ensures that farmers receive payment for their products. In this case, the Commissioner of Agriculture of the State of South Carolina acts as the obligee while the business obtaining the bond is obviously the principal.
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Many other industries in South Carolina also require their businesses to obtain surety bonds as a protective measure, including the insurance, plumbing and mortgage broker industries. Despite the exact industry you belong to, you should check both local and state rules and regulations regarding surety bonds.
However, even if you’re not required to secure a surety bond doesn’t mean you can’t take advantage of all the great benefits they can offer. You can get a surety bond just to give your business a little extra protection from unexpected events like employee theft. If you’re not sure which bond would be best for you, try browsing online or contact a surety bond specialist who will work with you to find the best bond for your business. By securing a surety bond you promote your company as dedicated to business ethics and customer satisfaction. Your potential customers will realize this and appreciate the effort you have made to protect the integrity of your business no matter the situation.