Are You Surety?
You don't have to eat the loss when a supplier screw-up hurts your business.
By Jacquelyn Lynn •
Opinions expressed by Entrepreneur contributors are their own.
You contract with a technology company to develop an expensivecustomized software package, but they fail to deliver. Do you haveany recourse other than filing a lawsuit? You do if you requiredthat vendor to provide a surety bond as a condition of yourpurchase agreement.
A surety bond is a special type of insurance where the suretycompany guarantees to one party (known as the obligee) that anotherparty (known as the principal) will fulfill a contract orobligation. These bonds are most commonly used in the constructionindustry, but they are suitable for use in a variety of commercialsituations.
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