Surety Bonds – Salt Lake City, UT

Surety bonds provide you with the assurance that contractual obligations will be met when you enter into an agreement with another party.

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Surety Bonds – Salt Lake
City, UT

Surety bonds provide you with the assurance that contractual obligations will be met when you enter into an
agreement with another party.

Surety Bonds – Salt Lake
City, UT

Surety bonds provide you with the assurance that contractual obligations will be met when you enter into an
agreement with another party.

In Salt Lake City, surety bonds are typically used to provide a payment guarantee to one party if another party doesn’t fulfill their contractual obligations.

Surety bonds are entered into by three parties: the obligee (whoever is requesting the bond, i.e., a customer), a principal (the party expected to fulfill obligations, i.e., the business owner), and the surety (the insurance company issuing the bond).

There are many different types of surety bonds, and they’re used for a variety of reasons. Whether you’re the obligee or a principal, there are several important things to understand about surety bonds. We put together a list of frequently asked questions to highlight important issues surrounding these bonds.

When is a surety bond required in Salt Lake City?

Many states require surety bonds in certain situations, and in Utah, there are three types of surety bonds that can be legally required.

  1. Contract bonds
  2. License bonds
  3. Court bonds

If you’d like to bid on a project as a contractor, a contract bond is required to declare you will uphold your end of contractual obligations, including the time it takes to complete a project.

License bonds, on the other hand, are often required when you move to get a business license.
The function of these bonds is to ensure the principal abides by state laws while they operate their business.

Court bonds aren’t as common as other types of surety bonds, but there are a few instances where they’re required. If you’re guarding another person’s assets or are appealing a court ruling, you may need a court bond.

While these are the three types of surety bonds that may be required in Utah, there are several other types of bonds that aren’t always required but are often useful.

What kinds of surety bonds exist?

Underneath the umbrella of contract bonds, license bonds, and court bonds fall many other types of surety bonds. These include collection agency bonds, cigarette tax bonds, lottery bonds, fuel tax bonds, and more.

Understanding surety bonds can be challenging, which is why the experts at Salt Lake City Insurance are here to help you determine what kind of bond you need for your business.

 

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How much are surety bonds?
Since there are a variety of types of surety bonds, the cost varies. For more information or to find out what your surety bonds may cost, call us today or fill out our online form.
Do I need surety bonds?
Surety bonds can offer insurance when making payments under a contractual agreement. It gives you a peace of mind, knowing your finances are secure and safe. In some cases, they may also be legally required, as in the case of contract bonds, license bonds, and court bonds.
How do I get surety bonds in Salt Lake City?
At Salt Lake City Insurance, we offer various surety bonds to meet your business needs. Call us today for more information. Our agents are always ready to help you find what you need.

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SALT LAKE CITY INSURANCE GROUP is your best option for comprehensive and budget-friendly coverage in the area. Our fast and friendly service saves you valuable time and money in finding the coverage you require for your family, your business, and your property. Contact us now to get started.

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