There are many types of surety bonds to help protect consumers against fraud or default of a service or obligation they paid for. These bonds can, if anything, give us a better piece of mind and definitely more credibility in the company or individual that the consumer has hired to perform the services or specific jobs needed. A couple of good examples of Surety Bonds are a License and Permit Bond or Performance Bond. The License and Permit Bond assures the consumer or company that the person they hired to perform the job or jobs needed will have a license or permit to do so.
Next, the Performance Bond will again assure the consumer or company that the work performed will be as promised or contracted. Both bonds are commonly used in the construction and real estate development industry. They are usually issued by an insurance agency. If the consumer or company feels the work performed is not as promised or contracted, then they can file a claim and it will be investigated. When a claim becomes validated, the surety bond issuer will pay to fix the issues in the claim and are obligated to be reimbursed by the person or company that was bonded. The bond issuer may also take legal action and also request any legal fees be reimbursed. As I mentioned at the beginning, there are many types of Surety Bonds. The bonds I summarized above are there to provide all of us with some level of consumer protection. We all deserve protection.