Surety & Bonds

Surety & Bonds

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Surety@mtnwst.com

(Insurance coverage can not be bound or modified without written confirmation from Mountain West Insurance & Financial Services, LLC.)

Insurance vs. Bonds

Insurance

Insurance

Transfers Risk

Two parties are involved:

Insurance Company
Insured

Bonds

Bonds

Guarantee performance; relieves project owner of risk of financial loss.

Three parties are involved:

Principal (our client)
Obligee (who our client is working for/in contract with)
Surety (bonding company)

Types of Bonds:
- Commercial: license and permit, crime, ERISA, miscellaneous
- Contract:
  - Bid Bond – provides assurance that the contractor intends to fulfill his/her responsibilities per the bid, at the price bid and will provide necessary performance and payment bonds.
  - Performance Bond – protects the project owner from financial loss if the contractor fails to perform the duties outlined in the contract.
  - Payment Bond – guarantees that the contractor will pay subcontractors, laborers, and suppliers relating to the contract.

Our Surety/Bond Niche Team will be able to help you find the right bond for your needs.