There are thousands of professional positions for which the State of California requires a permit or license to conduct business. There are millions of licensed professionals who work every day in one of the largest states in America. The use of surety bonds may be required to help local authorities monitor and enforce the rules and regulations that every license and permit holder must obey.
Surety bonds are legally binding contracts between three parties. When it comes to surety bonds that are required by the government, they are all very similarly written. The three parts of the bond are as follows:
1) Obligee: This is the state department that requires the bond. More often than not, they will set the terms and determine the amount of the bond needed to cover it.
2) Principal: The person who owns the bond. They are responsible for fulfilling the terms of the bond.
3) Surety: This is the firm that issues the bond. They are also liable in the case of a claim against the bond. It is important to find a surety company that is licensed and registered to do business in your industry, like us at SafeLineSuretyBond!