Commercial Bonds in California

Bonds to help grow your business

Commercial Bonds in California

Mills Insurance has offices in Palm Desert and Los Alamitos for Commercial Bonds in California!

Commercial Bonds Palm Desert, CAA Surety Bond is a basic term that describes a bond. Surety bonds are underwritten differently than insurance even though they are sometimes mistaken for insurance, when in fact a surety bonds are different.

A Surety Bond is essentially a guarantee. What exactly the bond guarantees depends on what language is written in the bond. With surety bonds there are always 3 parties involved.

The 3 parties involved are:

  • The Principal – the primary business entity who will be performing a contractual obligation.
  • The Oblige – the party who is the recipient of the obligation.
  • The Surety – who ensures, guarantees the principal’s obligations will be performed. Sureties are similar to insurance companies.

This agreement says that the Surety agrees to uphold – for the benefit of the oblige – the contractual obligations made by the principal, if the principal shall fail to uphold their agreement with the oblige.  Often consumers require a bond before they will agree to enter a contract with a contractor.

The 2 main categories of Surety Bonds:

  • Contract Surety Bond
  • Commercial Surety Bond

A California Contract Surety Bond guarantees a specific contract. A California Commercial Surety Bond guarantees the terms of the Bond form instead of a contract.

Some of the bonds we can provide in California are:

  • Business Bonds
  • Car Title Bonds
  • Contractor Bonds
  • Escrow Bonds
  • And many, many more!

If you would like more information about bonds, please call a licensed professional at Mills Insurance at 800-430-5093.