This surety bond is different than a Performance Bond Payment Bond It is a written statement given by the contractor that he will repay or settle the advanced cash paid by the owner related to contract. This bond ensures that the principal will perform his obligation as mentioned in the contract. If he fails to perform his obligation, then this bond makes the obligator to repay the advance as per contract. Mostly, this bond has been used by the overseas buyer to returning their advance in failure of the contract. In case of export, the importer gives advance to the exporter to complete his contract. Due to this payment, he gets a statement from the exporter that, if he fails in his commitments, he will repay the advanced amount given by the importer. Generally, every importer will insure upon this statement to get back his fund. In above case the advanced guarantee his obtained from the exporter. The amount covered by this statement is usually 10-30% of the contract price. The Advanced Payment bond is required by building contractors to fulfill his contract within the contract period. If any loss incurred to the purchaser, then the insurance company will cover the loss. Surety Company will cover the loss only when the builder cannot able to use the down payment given by the customer or the builder cannot able to refund the amount given by the customer. Insurance company will not cover the loss, when the builder fails to perform his obligation or is unable to complete his contract due to war, terrorism etc. Benefits of the Advanced Payment bond: This ensures the importer, the customer, or the owner that he will perform his obligation as mentioned in the contract .if any failure happens, and then the importer can get back his money as per the bond. Advance payment bond insures the contractor to complete his contract as per the agreement. Business that need a this surety bond usually need a contractor license bond to be registered with the state
The price you'll pay for your Advanced Payment Bond is generally based on your personal credit score. Start a free online quote by just completing a simple app or by calling 888-518-8011. Our experts will walk you through a very simple process. Compare our quote as the very lowest price, and then you're good to go! It's that simple!
We provide all types of Advanced Payment Bonds. Worldwide Insurance Specialists, Inc. has "in house" underwriting authority with the largest and best Surety (Insurance) companies in the world including, Great American, Liberty Mutual, Philadelphia, Travelers, and CNA Surety. All of these surety bond companies are A-rated under the AM Best credit rating system, and T-listed with the U.S. Department of Treasury. This guarantees that by getting bonded through us, you will be provided the backing of these highly trustworthy and reliable companies.
The application process for a Advanced Payment Bonds is easy! Many Bonds are INSTANT ISSUE! Easy Application, no underwriting, no credit check, no GIA required. Our NEW Desktop underwriting program provides you with a rapid approval process used to determine the degree of risk that you (the Principle) complete a project or obligation. Non-INSTANT ISSUE quotes can also get instantly approved. Submissions require very little information from you. Once you file and sign an indemnity agreement, we issue the Bond. It's that simple! We quote and issue Surety Bonds of every type and will help you through the entire process. These applications only require basic information about your business, bond type, and ownership structure. Once the application is complete, we submit to the insurance company (Surety) who will then issue your bond. Don't pay too much! Get your Bond Fast, and Easy with the best price! Click here to start the Advanced Payment Bond Application process.
An obligee is the entity that is requiring you to have the Advanced Payment bond.
Here are a few state specific bonds.