Getting Smart on Surety Bonds 09/12/2012
Not the insurance companies. They told me I could not get a bond because my company did not have a good credit score. Turns out that surety bonds and completion bonds and other bonds are not really insurance. They are more like lines of credit.
Here’s why: If a contractor does not finish a job, the bonding company has to step in and make it right. Then the bonding company can turn around and pursue the original contractor for reimbursement.