What do you need to know about BONDS?
A bond is tying things together through an agreement. Moreover, this is not just mere verbal agreement because bonds are usually fastened through a legal process.
When you discuss bonds in the insurance world, a bond ties one a person or organization to another person or organization. There are financial obligations that tie these two parties together. If you add another party, it would be the insurance company.
It will be the one responsible that the agreed contact is fulfilled. The insurance company makes sure that the person or organization involved will do what they promised to do. If one fails to do what they are obliged to do, the insurance company will find another person or organization to fulfill the contract. Additionally, any money provided by the bonding company will taken from the original contractor that did not fulfill the said agreement.
In the insurance industry, there are more than 300 kinds of bonds. Today, we are going to focus on the 2 most common: the commercial surety, and the contract/construction surety bonds.
- Commercial Surety Bond – Under this type, there are still numerous bond types. Most of them are able to provide security as long as the person or organization does their duties in a proper and legal way without any hint of fraud, deception or dishonesty. When it reaches a high level, these bonds can vouch for who you are. It implies that you can do what you say or promise. For instance, trustee bonds, auto dealer bonds, notary bonds, appeal bonds, license and permit bonds are just a few examples of commercial surety bonds.
- Contract Surety Bond – This type is not as broad as the commercial surety bonds. Usually, the contract surety bonds are linked to the construction industry. It assures you that the contractor, supplier, and anyone asked to build your property will fulfill the agreed contract. The contract workers will follow the designs as stated on the plans and property specifications. If there are any liabilities, they will agree to cover all the expenses with their contract. The following are under contract surety bonds: performance bonds, bid bonds, payment bonds, supply bonds, site improvement bonds, and subdivision bonds. If you need more details about binds, check these blog posts about bonds!
Below are the list of bonds we handle:
- Contract performance bonds
- Bid bonds
- Maintenance bonds
- Payment bonds
- Supply bonds
- License and permit bonds
- Subdivision bonds
- Oil & Gas Lease bond
- Abandonment bond
- Oil & Gas Blanket bond
- Miscellaneous bonds
Please note that the bonds we cover are NOT limited to the list above. Contact us if you need more information about bonds.
You can start by completing the form provided below. Once you submit it, we will get in touch with you the soonest possible time. We will be happy to assist you with anything related to commercial bonding opportunities.