Surety Bond is a relevant factor for businesses because it compensates the obligee if the company fails to pass their contractual obligation. Additionally, contractors who are licensed by government companies are mandated to purchase Surety Bonds. As a matter of fact, Limited Liability Companies in California are required to have their LLC Employee Workers Bond first before getting their license.
LLC Employee Workers Bond makes sure that LLCs will pay wages, fringe benefits, and provide other contributions for their employees. Aside from LLC Companies, all types of small businesses that need licenses from the government must obtain an Employee Workers Bond. Many people think that Surety Bond is a type of insurance policy. For that reason, when it comes to bonding, Surety Bond Insurance and Surety Insurance are used interchangeably.