Surety Bonds
Your company delivers. You do what you say you will do, when you say you will. Surety bonds back that up, providing a financial guarantee of your company’s performance that allows you to take advantage of new business and growth opportunities. Let us help you leverage your record and reputation to your benefit.
Providing Peace Of Mind To Your Clients.
While traditional insurance protects you, the policyholder, from losses due to accidents and other events, the surety bonds you purchase protect project owners and customers you are working for. The three parties involved in a surety bond are:
- The Principal: They purchase the surety bond to guarantee quality and completion of contracted work.
- The Obligee: This is the entity who requires the principal to purchase the bond (the client, the project owner, often a government agency).
- The Surety: This entity that issues the bond and financially guarantees the principal’s ability to complete the contracted work.
Common Types Of Surety Bonds.
Surety bonds generally fall into two main categories. We can help you determine and secure the type that is right for you.
Contract Surety Bonds
Primarily used in the construction industry, these guarantee that a contractor will complete a project according to the contract terms.
- Bid Bonds: Guarantee a contractor will enter into a contract if their bid is accepted.
- Performance Bonds: Guarantee the contractor will complete the project as specified in the contract.
- Payment Bonds: Guarantee the contractor will pay subcontractors, laborers, and material suppliers.
Commercial Surety Bonds
Often required by federal, state, or local governments, these ensure businesses comply with relevant laws, regulations, and licensing requirements.
- License and Permit Bonds: Required for certain professionals (e.g., auto dealers, mortgage brokers, private investigators) to obtain a license to operate legally.
- Court Bonds: Required in legal proceedings, such as fiduciary bonds for executors of estates or judicial bonds in civil cases.
- Public Official Bonds: Guarantee the faithful performance of duty by public officials like notaries, treasurers, and judges.
- Fidelity Bonds (Business Service Bonds): Protect a business and its clients from financial losses caused by dishonest or fraudulent acts of employees, such as theft or embezzlement.
Do You Need A Surety Bond?
If your business commonly involves a significant degree of public trust or financial risk, surety bonds may be needed. They are often required for:
Contractors
Those bidding on public construction projects (federal contracts over $150,000 require them).
Licensed Businesses
Those needing a state or municipal license to operate, such as auto dealerships, collection agencies, etc.
Fiduciaries
Individuals appointed to manage an estate or guardianship under court supervision.
Large Projects/Contracts
Businesses wanting to attract large clients who need assurance that the contracted work will be completed properly.
Request A Business Risk Review.
See what a review of your current insurance coverage uncovers. You may find that you’re adequately protected. You may find otherwise. Either way, you deserve to know for your peace of mind.