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What is the difference between a bond and a surety?

A bond does not protect the buyer of the bond (the principal), but does protect a third party (the obligee) from exposure to loss. The surety prequalifies a prospective principal on the basis of the principal's credit strength, ability to perform and character.

Does Maryland require contractors to be bonded?

The 2-year bond is required to obtain (and maintain) a Maryland contractors license for contractors engaged in home improvement and remodeling. Local contractor bonds in Maryland are required for the following cities and counties; Baltimore, Calvert, Carroll, Hagerstown, Price George, and St. Mary's.

Are surety bonds a good idea?

In many industries, obtaining a surety bond is a necessary but confusing part of the protocol. The fact is that surety bonds are good for business. They instill trust in your company, make it even more reputable and, in most situations, keep it compliant under the law or the governing body of your industry.

What is the difference between a bond and a surety?

A bond does not protect the buyer of the bond (the principal), but does protect a third party (the obligee) from exposure to loss. The surety prequalifies a prospective principal on the basis of the principal's credit strength, ability to perform and character.

What is an example of a surety?

Examples of Surety Bonds Includes bid or proposal bonds, performance bonds, payment or labor and material bonds, maintenance bonds and supply bonds. These bonds are required by state or federal law for most public construction projects or by a private developer.

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