A surety bond is a three-party agreement whereby the surety (insurance company) assures the project owner (obligee) that the contractor (principal) will perform a service in accordance with contract documents. When a contractor requires its subcontractors to obtain bonds, the contractor is the obligee and the subcontractor is the principal. Surety protection is designed to prevent a loss to the project owner (obligee). The surety (insurance company) prequalifies the principal based on financial strength and expertise. Since the bond is underwritten with little expectation of loss, the premium is primarily a fee for prequalification services.
BancFirst Insurance has long-standing expertise providing our customers with customized bond and surety programs. We have the resources to very quickly respond to your surety needs and can frequently turn around a firm surety quote within 24 hours. We also have underwriting authority with several companies which substantially eases the process for you. Our programs include:
Contract Surety Bonds
- The bid bond assures that the bid is submitted in good faith and that the contractor will enter into the contract at the price bid and provide the required performance and payment bonds.
- The performance bond protects the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.
- The payment bond assures that the contractor will pay specified subcontractors, laborers, and materials suppliers associated with the project.
Commercial Surety Bonds
- guarantee performance by the principal of the obligation or undertaking described in the bond
- License and permit bonds, which are required by state law or local regulations in order to obtain a license or permit to engage in a particular business, e.g. contractors, motor vehicle dealers, securities dealers Blue Sky bonds, employment agencies, health spas, grain warehouses, liquor, and sales tax;
- Judicial and probate bonds, also referred to as fiduciary bonds, secure the performance on fiduciaries' duties and compliance with court order, e.g. administrators, executors, guardians, trustees of a will, liquidators, receivers, and masters. Judicial proceedings court bonds include injunction, appeal, indemnity to sheriff, mechanic's lien, attachment, replevin, and admiralty;
- Public official bonds, which guarantee the performance of duty by a public official, e.g. treasurers, tax collectors, sheriffs, judges, court clerks, and notaries;
- Federal (non-contract) bonds are those required by the federal government, e.g. Medicare and Medicaid providers, customs, immigrants, excise, and alcoholic beverage; and
- Miscellaneous bonds, e.g. lost securities, lease, guarantee payment of utility bills, to guarantee employer contributions for Union fringe benefits, and workers compensation for self-insurers;