How To Choose A Surety Provider?

You often come across terms such as insurance, surety bonds, etc., primarily if you work in the construction industry. Insurance is a precautionary measure to ensure that you can cover the entire or part of the expense in case of any accident or mishap. It can be related to health, cars, homes, or other things. In the case of surety bonds, the agreement looks simple but involves three parties. Surety bonds, such as guardianship bonds, are agreements that ensure that the other party follows through with either payment or performance of a specific act. This bond is essential to protect the interest of the minor/elderly/disabled person.

The three parties involved in this bond are the principal, surety, and obligee. The principal is usually the person that is liable to perform or pay. The surety is like an insurance company that will bear the loss if the principal fails to perform the act. And the obligee is the party that gets the benefits of a surety bond (in case of failure to perform by the principal). For example, in the case of guardianship or custodian bond, the person that is liable for the incapable person (minor, disabled, elderly), i.e., a guardian, needs to get the surety bond making them the principal, the insurance company as the surety and the incapable person as the obligee.

As the market has tough competition, you will find various surety providers. But how do you find the right fit? Here are a few factors to consider before choosing a surety provider-

Reputation and Track Record

Most surety providers work with construction agencies because they, too, require surety bonds. If their experience is limited to that field, you should reconsider the search and look for a company that has experience with guardianship bonds. So thorough background checks on the guardian and getting a detailed history is a part of the process to consider if the guardian is “bondable.” You can also ask people who have been in similar situations and the companies that worked for them. Referrals are a great way to begin with your search list. Many companies look for loopholes in the contract not to pay the obligee if the principal fails to perform. And this reputation is something other than what you want to look for.


The company’s service helps with the process of getting a surety bond. Only some people are aware of how surety bonds work. People might need guidance or information about the same. If the staff is open and communicative throughout the process, it is a good sign. Filling out a bond can be confusing, but with the right company, the experience gets better.


Surety bonds like guardian bonds are usually court-mandated because they are legally set to be the incapable person’s guardian. The contract helps keep the obligee’s interest intact and ensures they do not go through embezzlement. In other words, the agreement legally guarantees the welfare of the incapable person and avoids a situation wherein the assets are misused.

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