What Is a Surety Bond?

Ever wonder what exactly a surety bond is, or why you need one?  In today’s economy, there is no shortage of work to be done, and no shortage of contractor’s willing to do that work.  However, the entity that is asking to have the work done, or “Obligee”, needs to make sure that any contractors hired to do the work can complete the job in a reasonable time, and at a reasonable price.  That is where we come in as the “Surety”.  Before any work can be done for the Obligee, a bid is held for contractors seeking to do the work for the lowest reasonable price.  Our job is to check with each of these contractors to make sure they can handle the extra work and make sure they have a good work history with other clients.  If they meet these criteria, we provide them a Bid Bond that allows them to take part in the bid for the job.  If one of the contractors we provided a bid bond to wins the bid, we award them with the Surety Bond, a contract clarifying what exactly the work will entail and how long it must be maintained.  Once work can begin, we act as a middle man to help guarantee that the work the Obligee is asking for will be completed and maintained.  Basically, we provide insurance for the Obligee, and will compensate the Obligee on behalf of the contractor if the work cannot be completed.  For a more detailed explanation, you can watch this short animation from our friends at Lance Surety all about what surety bonds are and how they work.


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2740 Rt. 10 West, Suite 205.

Morris Plains, NJ 07950

P 1 (888) 850-9063
F 1 (973) 402-0770


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Get Started With a Bond Program

started-persons Patrick J. Lynch Jr. (973) 541-3403 PLynchJr@FIAsurety.com
started-persons Kenneth Vogt (973) 541-3416 KVogt@FIAsurety.com
started-persons Patrick J. Lynch Sr. (973) 541-3401 LynchP@FIAsurety.com
started-persons Paul Alongi Sr. (973) 541-3414 PAlongiSr@FiaSurety.com

We are currently licensed in the following States

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