Rhode Island Surety Bonds are a three-party agreement between a principal, obligee and surety. The principal is the party responsible for fulfilling the bond's obligation. This is usually a Rhode Island individual or business. This is also the party that purchases the bond. The obligee is the party that receives the benefit of the bond. Often this is the state of Rhode Island or another party. The Surety is the bond company providing a financial guarantee. The guarantee is usually that the principal will perform the obligations.
Should a claim occur on a Rhode Island surety bond, the surety has a responsibility to investigate the claim. If a valid claim exists, the surety must pay the claim. They can then seek reimbursement from the principal under the indemnity agreement. This differentiates surety bonds from insurance. Rhode Island surety bonds provide a great benefit to the state. Someone with a claim can collect directly from the surety instead of having to try and collect directly with the principal. This can save time and money.
Axcess Surety is the premier provider of surety bonds nationally. We work individuals and businesses across the country to provide the best surety bond programs at the best price.
