Surety bonds are insurance products that secure a financial risk associated with a particular transaction, much like cosigning a loan. The bond provides a guarantee that the bonded company or person will perform its obligations in good faith. Failure to do so may trigger a requirement that the surety company who provided the bond step up in its place.

Since the requirement for bonds is typically legal or statutory, failure to post a bond means your business may be prohibited from bidding projects, building roads or schools, manufacturing or shipping goods…the list goes on.