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.
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.
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.
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.
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.
How can surety bonds benefit me/my business?
Include a more rigorous prequalification and review
Ensures project completion
Provides options in the event of default
Ensures payments to labor, subcontractors and suppliers
Protects tax dollars and promotes economic growth