What surety bond means
A surety bond is a guarantee from a bonding company that a contractor will meet an obligation, such as following license law or finishing a job, or the surety pays the claim.
Also called contractor bond, license bond.
Where it shows up in your business
Many states require a license bond to get licensed. Unlike insurance, the surety expects to be paid back for any claim it pays.
Work it out
- Money: Money guides for contractors