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JYS GROUP

Surety Bonding

What is a Surety Bond

 

To put it simply, Surety Bonds guarantee that specific tasks are fulfilled. This is achieved by bringing three parties together in a mutual, legally binding contract. The principal is the individual or business that purchases the bond to guarantee future work performance. The obligee is the entity that requires the bond. Obligees are typically government agencies working to regulate industries and reduce the likelihood of financial loss. The surety is the insurance company that backs the bond. The surety provides a line of credit in case the principal fails to fulfill the task. The obligee can make a claim to recover losses if the principal fails to fulfill the task. If the claim is valid, the insurance company will pay reparation that cannot exceed the bond amount. The underwriters will then expect the principal to reimburse them for any claims paid.

 

As a practical matter, a bond is also an instrument of pre-qualification representing that the principal has been examined by the Surety and found to be qualified to complete the obligation.

 

John Sachanda, President, JYS Group, Inc., has been in the surety industry for more than 30 years.  

 

John is particularly versed in providing surety bond solutions for businesses who may be challenged and is adept at identifying bonding solutions for many businesses.

 

JYS Group can provide all types of contract and commercial surety bonds:

  • Bid Bonds

  • Performance Bonds

  • Payment Bonds

  • Supply Bonds

  • Subdivision Bonds

  • Environmental Performance Bonds

  • License & Permit Bonds

  • Miscellaneous Bonds

  • Court & Fiduciary Bonds

  • Fidelity Bonds

 

Complete the form below if you are in need of a bond, or call John directly at (630) 887-7580.