Surety Bond Education

What is a contractor license bond and how do you get licensed and bonded? In many states, contractors need to apply and qualify for a license in their given trade. Sometimes, this is at the state level, or can be required by local municipalities. Often, a contractor will have to pass a test evidencing proficiency in their trade. You may have heard of a contractor being licensed and bonded. If a contractor is licensed and bonded, she or he has obtained the license in their trade while also obtaining a contractor license bond. What is a Contractor License Bond and Why is […]

What is an indemnity agreement for surety bonds? As we’ve discussed previously, a surety bond is a three-party agreement between the Obligee, Principal, and Surety Company. The bond guarantees the principal will fulfill its obligations. We have also mentioned that unlike insurance underwriting, surety bond underwriting assumes a zero loss. How is that possible? Well that’s where the indemnity agreement comes in to play. Let’s take a look at what an indemnity agreement is for surety bonds: What is an Indemnity Agreement? What is an indemnity agreement? The indemnity agreement is a separate contract which transfers risk from the surety […]

Do you need a surety bond for your business? At Schmalz & Associates, we want to provide you with helpful resources to develop your understanding of surety bonds. Whether you need a license bond, performance bond, permit bond – or a different type of surety bond – we are here to help point you in the right direction. In this article, we'll discuss the different types of surety bonds and outline the initial process for you. Read more about surety bond basics here.