Surety Bonds

What are Surety Bonds?

A surety bond is a contract between three parties—the principal (you), the surety (the insurance company) and the obligee (the entity requiring the bond)—in which the surety financially guarantees to an obligee that the principal will act in accordance with the terms established by the bond.

Court & Fiduciary

License & Permit

Bid & Performance

Lost Instrument

Notary

Public Official

How Do Surety Bonds Work?

A surety bond is a three-party agreement that guarantees an obligation. The principal buys the bond, the obligee requires it, and the surety backs the promise. If the principal doesn’t meet the obligation, the surety may respond up to the bond’s penal sum and will seek reimbursement from the principal.

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What the bond does: It guarantees performance or compliance for the obligee. It’s not insurance for the principal.

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Underwriting: Approval is based on credit, financials, experience, and the bond type/amount; higher limits may require financial statements.

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Premium & term: You pay a percentage of the bond amount to keep it active (often annual). Rates vary by risk, credit, and bond form.

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Claims: The obligee files a claim; the surety investigates and may pay, arrange completion, or find a replacement. The principal must indemnify the surety.

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Renewal & release: Many bonds renew yearly; cancellation or release typically requires obligee approval or statutory notice.

Not sure which bond you need? Contact us and we will help you navigate the process.

Contact & Offices

Primary Address:
P.O. Box 5556
Baltimore, MD 21094

Secondary Address:
11426 York Road, 2nd Floor
Cockeysville, MD 21030

Have a bond question?
Ready for a quote?
410-332-1450 info@hksurety.com

Visit our online ERISA bond portal for instant quotes and real-time status updates.

We look forward to putting our family’s
expertise to work for you.

California Agency License #6007306