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

Insurance
Transfers Risk
Two parties are involved:
- Insurance Company
- Insured

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.