A surety bond is a binding contract between three parties: the principal (you or your business), the surety (State Farm), and the obligee (the customer/entity requiring the bond). The surety guarantees to an obligee that the principal will act in accordance with the terms of the bond.
You may be obligated to provide a bond as part of a business license or contract requirement. Being bonded may also help you attract new business. Potential clients might take comfort in knowing they will be protected by it.
Surety bonds are often required of businesses or professionals who provide services to customers. These bonds are meant to ensure the business or professional will do their work in accordance with the licensing laws and other regulations.
We offer far more types of surety bonds than we can possibly list here. So, we’ll only highlight the more common ones:
These bonds may be required for your business to be properly licensed in a given city, county, or state. License and permit bonds are meant to ensure that the work done by your business will be in compliance with specific state and municipal laws.
Types of license and permit bonds you may need:
Public officials, particularly ones responsible for handling public funds, are usually required to provide a bond that guarantees they will faithfully and honestly perform their duties while in office.
Positions requiring public official bonding can include:
If you are appointed an administrator, executor, guardian, conservator or trustee, you may be required to get a probate bond before executing your duties. A probate bond guarantees an honest accounting and faithful performance of duties by named fiduciary or trustees.
Common types of probate bonds include:
Performance bonds are common in construction and real estate development. Owners or investors typically require developers to make sure that contractors or project managers secure performance bonds as a guarantee they will meet the obligations of the contract.
Common types of contract performance bonds include:
Fidelity bonds are insurance policies that offer businesses protection against loss of money and securities caused by fraudulent or dishonest acts committed by employees.
Common types of fidelity bonds include:
Fidelity bonds also offer you the flexibility to cover specific employees or job positions (schedule bonds) or all employees (blanket bonds).
This is only a general description of coverages of the available types of business insurance and is not a statement of contract. Details of coverage, limits, or services may not be available for all business and vary in some states. All coverages are subject to the terms, provisions, exclusions, and conditions in the policy itself and in any endorsements. Contact a State Farm agent for more information and a customized quote.
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Life Insurance and annuities are issued by State Farm Life Insurance Company. (Not Licensed in MA, NY, and WI) State Farm Life and Accident Assurance Company (Licensed in New York and Wisconsin) Home Office, Bloomington, Illinois.