What Is An Insurance Bond | Business Bond
9 terms

Surety Bonds


Terms in this set (...)

surety bond
A guarantee that debts and obligations will be carried out, and the benefits will be paid for losses caused by nonperformance.
fidelity bond
Insurance coverage that companies buy to reduce the risk of loss caused by employee theft of assets. The insurance company investigates the backgrounds of the employees that an organization wants to have bonded.
One to whom an obligation is owed.
promisee who can claim the benefit of the obligation
The individual that needs a bond
A person, such as a cosigner on a note, who agrees to be primarily responsible for the debt of another.
bid bond
A surety bond guaranteeing that the bidder will sign a contract, if offered, in accordance with his or her proposal.
performance bond
A bond which guarantees to the owner that the contractor will perform the work in accordance with the contract documents.
public offical bonds
which are required by law, guarantee that public officals will handle public money correctly and otherwise perform their duties faithfully and honestly
. Fiduciary bond
Type of surety bond that guarantees that a fiduciary will fulfill its obligations set forth by law