What is a Supply Surety Bond?
A Supply Surety Bond is most often required by public and private entities which seek to ensure that a certain product or material will be available at a future date. The Supply Surety Bond will benefit the purchaser of the product or material should the requested items not be available at the time specified in the contract. This bond can cover the additional expenses incurred by the purchaser to obtain the same or similar product from another supplier.
What is the current market for a Supply Surety Bond?
Supply Surety Bonds are widely written by multiple surety bond markets. The Supply Surety Bond amount is the total amount of the agreed upon purchase price between the purchaser and supplier with the exception of any other percentage increase or decrease listed within the supply contract.