How does a performance bond work?

It guarantees that your business will complete a project according to contractual terms; if not, the surety compensates the obligee.

A performance bond ensures that a contractor completes a project according to the terms of a contract. If they fail to do so, the surety steps in to compensate the obligee or complete the project.

A small business with poor credit pays a higher premium for a surety bond but secures the contract by demonstrating compliance.

Work with a reliable surety company or insurance broker to secure bonds tailored to your business needs.