Bonds

Unlike insurance, a surety bond is a three party contract where the surety becomes obligated to a third party for the obligation of the principal if the principal does not perform their obligation to the third party. Surety is a credit extending function and is, therefore, much more akin to banking than insurance. As a result, there is typically an extensive underwriting process.

There are many types of bonds, but at eaton & associates we specialize in contract bonds. Contract bonds guarantee contracts. Typically two bonds are issued for construction contracts; a performance bond which guarantees the principal (contractor) will perform according to the contract and a payment bond which guarantees the principal will pay bills related to the contract. Bid bonds are often issued before construction projects begin. The bid bond guarantees the lowest qualified bidder will enter into a contract with the third party and will provide performance and payment bonds.

We are a leading agent providing contract bonds in Arizona and throughout the country. We represent the major surety companies and have relationships with most of them that are 25 to 30 years old. We would be glad to talk with you about how we can put our expertise to work for you.