A bond is a written promise that an insurance company will protect your assets and back up the promises made by someone else. Specifically, a surety bond is a guarantee involving three parties: Principal, Obligee and Surety. The Principal is the person or business with an obligation to perform. The Obligee is the person, company or governmental unit requiring the guarantee. The Surety company provides the bond to guarantee that the Principal fulfils their obligation to the Obligee. As long as the Principal performs their obligation the Surety company has no role. The best Surety bond situation is when the Principal fulfils their obligation, the Obligee is satisfied and the Surety company takes no part in fulfilling those obligations. If the Principal does not do what is required, the Surety company has to meet the obligations. If this happens, the Surety company is entitled to be reimbursed for losses and costs by the Principal.
In today's marketplace, surety bonds are the preferred method of guaranteeing performance and financial obligations. Pepper, Johnstone & Company has a long-standing history with many of the industry's leading surety companies. These relationships allow us to provide each client the best surety bond solutions at the most competitive price.
Bid, Performance & Payment Bonds and Supply bonds for contractors with program capacity needs from “First Bond” to $25 million
ERISA (Pension Plans), Business Services Bonds
Commercial Banks and Savings Institutions, etc.