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Surety Bond Cost – Many Minnesota businesses need a bond for a license, a job or a city . We write Minnesota surety and fidelity bonds and can tell you your surety bond cost in just a few minutes. Also write, notary, mechanical bonds, master plumber bonds, electrical bonds… We will make it easy and painless, we promise. MN insurance agents will issue your bond correctly, the first time.
What is a Surety Bond?
Well let’s start out with what a bond is. A bond is like a loan from a bank. Money is set aside to fulfill a contract, promise or obligations. If the bond is used, the money must be paid back. The cost of the bond is like interest for setting the money aside, for their services and the risk of it not being repaid. A surety bond is simply an agreement between three people. A principle (that would be you), the bonding company (a surety / the insurance company) and the obligee (entity requiring the bond). Generally speaking, surety bonds will protect the obligee from fraud, abuse and penalties.
Bonds are very common in the construction industry. An example would be a contractor is hired to do complete a job per a contract. If they don’t, then the bonding company pays to complete the job and cover any damages, penalties or other associated costs.