Surety bonds are a very old three party arrangement developed over time to help parties to do business with one another. A surety essentially validates the financial strength, capacity, experience and/or professionalism of the professional or performing party minimizing the financial risk and/or business uncertainty of the contracting party.
There are essentially three types of Surety Bonds: Commercial Bonds, Court Bonds and Construction Bonds.
Commercial Surety Bonds
Commercial bonds are the largest category of surety bonds and a primary focus of Alpha Surety. Commercial bonds include every type of license and permit bond required by federal, state or municipal government or businesses with the intention of protecting consumers related to the handling of funds or professional services.
Often professionals and business owners may not be familiar with the purpose, terms and cost of commercial bonds and they are delayed or forgotten until the very end of the licensing process. Our surety bonding professionals understand that you have a business to run and that you need your surety bond as soon as possible. Our in house underwriting authority allows us to quickly evaluate your surety bonding needs and get you what you need fast.
Court Surety Bonds
Court bonds include any type of surety bond a person or a business may be required to obtain at the direction of a court, judge, arbitrator or mediator. Select surety bonds may be required prior to filing select types of legal action or as a consequence of the legal proceedings. Such bonds are intended to ensure the financial responsibility of one of the parties for the matter that is before the court including but not limited to:
Construction Surety Bonds
In construction and development, there are several very different risks: (1) bid integrity, (2) performance, and (3) payment of subcontractors , suppliers and materialmen.
Government entities, developers and property owners may require one or more of these surety bond types to mitigate their risk. Contractors and/or subcontractors may be required to provide one or more of the following types of bonds:
Developers may obtain special permission to build contingent on the satisfactory installation of specific site improvements on or away from their property and site utilities may be required. Additionally, Developers may be required to secure a bond for future property tax obligations and/or homeowner association dues for multi-unit communities. These bonds are generally include but are not limited to:
