Are You Surety?
You don't have to eat the loss when a supplier screw-up hurts your business.
You contract with a technology company to develop an expensive customized software package, but they fail to deliver. Do you have any recourse other than filing a lawsuit? You do if you required that vendor to provide a surety bond as a condition of your purchase agreement.
A surety bond is a special type of insurance where the surety company guarantees to one party (known as the obligee) that another party (known as the principal) will fulfill a contract or obligation. These bonds are most commonly used in the construction industry, but they are suitable for use in a variety of commercial situations.
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