Tennessee Surety Bond Types
Surety bonds are known for the great protection they offer businesses, their customers and government agencies. Tennessee offers many different types of surety bonds to be used as protection by various business industries. Generally speaking, surety bonds keep individuals or businesses from participating in fraudulent activities that would take advantage of their customers or the government.However, surety bonds offer many other benefits as well.
When an individual or company enters into a contract with a customer a surety bond is often obtained to ensure that the company, or principal, completes all of the agreed-upon duties. The surety issues a bond between the principal and its customer, 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 his or her duties, then the obligee may seek compensation from the surety if necessary.
Surety Bond Definitions in Tennessee
The Tennessee state government requires many different types of businesses to obtain various surety bonds. One such bond is the City of Knoxville Gas Installation and Serviceman’s Bond. This bond binds the principal, a gas installation and service work company, to the city of Knoxville in the sum of $10,000. The purpose of the bond is to guarantee that a gas company working in Knoxville does honest and adequate work. This bond states if the company fails to comply with the terms of all permits, laws, ordinances, rules and regulations for gas installation and service work that the company must either correct any errors or reimburse any errors the principal failed to correct.
Although many businesses, like this one, get surety bonds because the government requires them, they are actually available to any individual who would like extra protection for his or her business. Acquiring a surety bond without being required to is just as easy and beneficial as getting one that is required. You can easily find resources online to help you determine which type of bond is best for you and your business, and if you need help, finding surety bond specialists is just as easy. A specialist will work to get the best bond for you and your needs. Applying for a bond takes only a matter of minutes and you can get a quote back within a few days. After you get one you’ll feel much better about the legitimacy of your business, and so will your customers.