Express Scripts is now requiring some applicants who wish to contract with them to furnish a $500,000 performance bond for at least the first two years of the contract. This bond, per Express Scripts, “guarantees to the obligee (Express Scripts) that the principal will carry out the performance of their contract according to terms and conditions agreed to by the parties.” Express Scripts may also require that the bond extend beyond the initial two-year period. These bonds are very expensive and difficult to obtain. The cost of such a surety bond depends on the pharmacy and its owners’ creditworthiness, but is still very high, and can easily exceed $15,000.
See more at https://swiftbonds.com/performance-bond/
About Who is a Surety
Who can be a surety– well, anybody can be a surety. In the older days, sureties were typically individuals, as a wealthy individual would provide surety on behalf of another. This would normally be a wealthier individual who would vouch for someone’s character, such as a cattleman that would vouch for the banker.
In modern times, a surety is normally a large insurance company, like AIG or Zurich. These companies have divisions of their larger insurance company that serves as a surety. These divisions focus solely on surety bonds and have a history of default that they use to determine the risk with regard to a specific bond.
via Blogger Who is a surety?