How do Surety Bonds differ from Insurance?
When dealing with losses, insurance companies typically expect to make payment for a certain percentage of a given claim. However, surety companies do not expect to make such payments on claims, and instead treat the premiums paid for surety bonds as service charges. The premiums essentially authorize the principal to use the surety’s deep pockets for financial backing, which provide the required guarantee.
Latest posts by Victor J. Lance, President/Owner (see all)
- How to Start a Travel Agency [Infographic] - February 15, 2019
- Which States Require Crypto Businesses to Get a Money Transmitter License? - February 13, 2019
- Professional Fundraisers in Ohio: Don’t Forget About Your Bond Renewal - January 30, 2019