surety bonds
maintenance bonds
license and permit bonds
dishonesty bonds
performance bonds


An issuer can purchase a bond to guarantee payment to its bondholders in case the issuer defaults. Premiums are a measure of the perceived risk of failure of the issuer and are paid to the insurer in either lump sums or installments. 

What is a Surety Bond? 

A surety bond is essentially a contract between three parties namely, principal (you), surety (us) and Obligee. The surety bond states that hence the principal fails to fulfill the terms of the agreement, the surety company will reimburse the obligee entirely if the claim is found to be valid. 

The Bond Terminology 

  1. The principal can be an individual or an organization looking to work for obligee, and to guarantee them on the terms of future work performances, they usually buy a surety bond.
  2. The obligee (mostly govt. agencies) is the entity that requires the bond in order to roll out a project to the designated individual or the organization. The obligees require this bond to avert any sort of financial losses if the principal fails to fulfill the agreement terms.
  3. The surety is a credible surety writer which works as a third party between the principal and obligee. 

Are Surety Bonds and Insurance the Same? 

Surety bonds are established between three parties instead of two.
Suretyship, or a bond, is more of a loan and subject to good credit and insurance is rated by risk and statistics. 

What do I Need to Get a Surety Bond? 

Prior to issuing a surety bond, a surety firm may require the principal to sign an agreement for corporate, personal and spousal indemnification. This indemnity agreement will render surety harmless in the state of a claim. Make sure you understand what indemnitor means before entering into a bond relationship. 

Who Pays the Obligee if the Business-Terms are Not Met? 

When the obligee makes a claim that the principal has violated the terms of the agreement, the surety firm will check with the work ordeals to see whether the claim upholds or not! If in case the claim is found to be true, then the surety will reimburse the obligee entirely concerning losses incurred. (The exact same amount mentioned in the agreement which also determines the premium for the bond!) 

Ultimately, the surety will look towards the principal to reimburse them fully either on a lump sum basis or a monthly agreement basis, which includes the legal fees that went into checking the validity of the claim. 

If Ultimately I am the one who has to pay up, then why do I need a Surety Bond? 

Obligees like big government agencies can require a surety bond by the principal to qualify them and make sure a task, or project, is completed. This is why other entities require a bond to guarantee a positive outcome. 

Bonding companies rate your bond cost based off the past performance and your good credit. The better your credit the better your rate. Surety bonds will also ensure more flow of liquidity than the letter of credit, and that liquidity can be invested elsewhere, while in the letter of credit the bank freezes all such assets. One of the major reason to get a surety bond is, you can make claim against the obligee for any default occurred in the payment procedures or any other work obligations and can win back the exact same amount you requested in case the surety agency find it valid. In insurance terms, it is called as “walking in the shoes of the principal” which letter of credit fails to deliver due to lack of staff available for the job. 

Types of Surety Bonds 

  •  Licence & Permit Bond
  • Construction Bond
  • Dishonesty
  • Performance

To put it simply, surety bonds are a good way to ensure that the workflow and the inscribed trust between all the parties will have a resolution. 

What are the benefits of being bonded?


Being bonded gives issuers the ability to leverage business growth. With the increased stature of having the insurer’s credit rating, a business can feel safer in taking risks to improve and grow the business. This is especially true in the construction and financial industries. 

A bonded business can obtain unbiased criticism from a credit professional and seek advice in underwriting projects. 

Some bonds we handle include, but are not limited to, the following: 

  • Contract performance bonds
  • Bid bonds
  • Maintenance bonds
  • Payment bonds
  • Supply bonds
  • License and permit bonds
  • Miscellaneous bonds

Providing Experienced Insurance Coverage to:

Alma, Bates City, Belton, Bogard, Bosworth, Braymer, Breckenridge, Brookfield, Brunswick, Buckner, Camden, Carrollton, Centerview, Chillicothe, Columbia, Corder, Dover, Excelsior Springs, Gallatin, Grain Valley, Greenview, Greenwood, Hamilton, Hardin, Harrisonville, Henrietta, Higginsville, Holden, Holt, Jefferson City, Joplin, Kansas City, Kearney, Kidder, Kingston, Lathrop, Lawson, Lee’s Summit, Levasy, Lexington, Liberty, Lone Jack, Marshall, Maryville, Mayview, Missouri City, Napoleon, Oak Grove, Odessa, Orrick, Peculiar, Platte City, Plattsburg, Polo, Raymore, Rayville, Richmond, Savannah, Sedalia, Sibley, Smithville, Stet, Sugar Creek, Tina, Tracy, Trenton, Unity Village, Unity School, Wakenda, Wellington, Weston, Gower, Trimble, Edergton, Plattewoods, Parkville, Stewartsville, Osborn, Turney, Knoxville. 

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Baldwin Insurance Agency

200 N Jefferson St, Suite A, Kearney, MO 64060, US

(816) 628-0092



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9:00 am – 5:00 pm


9:00 am – 5:00 pm


9:00 am – 5:00 pm


9:00 am – 5:00 pm