Surety Bonds

A surety bond is a legally binding contract or another form of insurance that ensures obligations are met by another third party.

Surety bonds come in various types depending on your situation. Some common surety bonds are notary bonds, performance bonds, bid bonds, and payment bonds.

Surety bonds and insurance both serve as risk management tools although each have different purposes or characteristics. Surety bonds are designed to ensure performance or a specific obligation or contract where an insurance policy typically provides financial protection against unforeseen risks or losses.

Some key factors are the bond type, bond amount, contract terms, credit and various underwriting factors.

If a claim is made it means the party who required the bond believes you have not fulfilled your obligations as outlined in the bond agreement. The claim process involves: 1. Claim Submission 2. Investigation 3. Evaluation 4. Resolution

This depends on the type of surety bond and the terms outlined in the bond agreement.

In most cases. There can be potential consequences upon cancellation depending on the type of bond and the contract terms.

The first step is to get in touch with an OVD advisor. Our team of experts can help you identify what type of bond you may need and walk you through quotes and the underwriting process until your surety bond application is complete.