Surety Bonds for Hawaii
A Surety Bond is a basic term that describes a bond. Surety bonds are underwritten differently than insurance even though they are sometimes mistaken for insurance, when in fact surety bonds are different.
A Surety Bond is essentially a guarantee. What exactly the bond guarantees depends on what language is written in the bond. With surety bonds there are always 3 parties involved.
The 3 parties involved are:
- The Principal – the primary business entity who will be performing a contractual obligation.
- The Obligee – the party who is the recipient of the obligation.
- The Surety – who ensures, guarantees the principal’s obligations will be performed. Generally an Insurance Company is the surety.
This agreement says that the Surety agrees to uphold – for the benefit of the oblige – the contractual obligations made by the principal, if the principal shall fail to uphold their agreement with the oblige. Often consumers require a bond before they will agree to enter a contract with a contractor.
The 2 main categories of Surety Bonds:
- Contract Surety Bond
- Commercial Surety Bond
A Hawaii Contract Surety Bond guarantees a specific contract. A Hawaii Commercial Surety Bond guarantees the terms of the Bond form instead of a contract.
Jack Wolfe Insurance has over 40 years experience placing surety bonds for Hawaii’s contractors. We have surety companies willing to provide surety bonds for all types and sizes of contracts.
If you would like more information about bonds, please call us at (808) 261-7922.