A bond is a three-party contract in which one party, the surety, guarantees the performance or honesty of a second party, the principal, to the third party, the obligee, to whom the performance or debt is owed. Bonds are designed to induce the obligee to contract with the principal by demonstrating the principal’s credibility and guarantee performance per the terms of the agreement.
Higginbotham has a unit solely dedicated to providing a broad range of federal, state and local bonding services. We represent the country’s top surety companies so we can provide bonds to a wide range of businesses and individuals with varying credit situations. Our broad market representation and focused expertise allow us to support your growth by expanding your bonding capacity and provide quick turnaround.
Contract Payment and Performance Bonds
Guarantee that a contractor will pay fees owed to subcontractors for labor and materials and upholds the value of the work performed. They are commonly used in the construction and development of real property.
Cover employers for losses caused by dishonest acts of bonded employees, either by name or by position. Dishonest acts include larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction and willful misapplication.
Commercial Surety Bonds
A broad range of bonds that do not fit the classification of a contract. There are four types: license and permit; court; public official and miscellaneous.
Judicial and Court Bonds
A broad category of bonds required in court proceedings. Judicial bonds are required when a litigant seeks a special right or remedy in advance of a final court decision. They guarantee conditions if the opposing party incurs damages as a result of the privilege or that the privilege was unjustified. Fiduciary bonds guarantee that the individuals or legal entities appointed by the court to oversee the property of others will execute those duties in good faith and be accountable for deficits.
Professional Service Bonds
Guarantee the proper performance of a professional. Some of the most common professions requiring them are construction contractors, insurance salespeople, car dealerships, warehouses, notaries public and private detectives.
License and Permit Bonds
Required by certain federal, state or municipal governments as a prerequisite to receiving a license or permit to engage in specified business activities. They guarantee that the principal will comply with applicable laws and regulations.
Oil and Gas Bonds
A class of bonds that guarantee compliance in connection with the drilling and operation of gas wells. Common bonds are plugging and abandonment, right of way, permit, performance and excise tax.