Surety Association of Illinois
Who We Are
Surety Association of Illinois (SAI) is a voluntary, non-profit, professional association of surety underwriters, underwriting assistants, agents, brokers, attorneys, and other related professionals who have expressed interest in the business of suretyship in the State of Illinois.
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Our Vision is to connect the surety community by providing a central facility for correspondence with other organizations.
Our Mission is to educate and inform members and the community about corporate suretyship.
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FAQs About Surety
What is a surety bond?
A surety bond is a three-party written agreement in which one party (surety) guarantees to another party (obligee) that a third party (principal) will perform according to the bond, contract, or other obligation.
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Surety- The insurnace company thats takes responsibility for the debt, or defualt of another party.
Obligee- Receives the surety's guarantee that the prinicpal will perform as promised. Generally a government agency, private devloper/owner, or other party protected by the bond.
Principal- General contractor or business bound by a contract, statue, or other obligation whose performance or payment the surety guarantees.
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What are the different types of surety bonds?
Contract bonds: Guarantee performance of public or private construction contracts. These include: bid, performance & payment, maintenance, and supply bonds.
Commerical bonds: Guarantee performance of obligations that generally do not arise from contracts. There are countless types of commerical bonds. A few examples include: license& permit, court, public official, customs, and many more.
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How can surety bonds benefit me/my business?
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Include a more rigorous prequalification and review
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Ensures project completion
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Provides options in the event of default
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Ensures payments to labor, subcontractors and suppliers
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Protects tax dollars and promotes economic growth
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