A bond is a contract between you (The Principal) and the Surety (the Insurance Company or issuer of the bond) and the Obligee (the entity requiring the bond / the person who needs the guarantee that you will do what you said you would do). The Surety financially guarantees to the Obligee that you will act in accordance with the terms of the bond. In that regard a bond is like a line of credit and the rates are, in part, determined by your credit score. When a bond pays out the Surety (Insurance Company) expect reimbursement. A bond safeguards against defaults in both performance and payment by a principal. To obtain this safeguard you (The Principal) pays a premium to the Surety.

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, janitorial and financial industries.

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

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

• Contract performance and payment bonds
• Contract Bid bonds
  • These bonds are generally issued to contractors one large jobs and are issued together in one transaction.
• Contractor License bond-required by the Contractor’s State License Board
• Janitorial bond-reimburses clients for employee theft.
  Probate Fiduciary bonds-a legal instrument that serves as “insurance” to protect beneficiaries, heirs and creditors when a fiduciary fails to perform honestly or competently.
• ERISA bonds-required on 401K or profit sharing plans to protect the funds from dishonest acts of the manager of those funds.
• Employee Dishonesty bonds-protects businesses from losses due to employee dishonest behavior. Often used by Non-Profit Organizations
• Defective Title bond or Lost Title- Used by the Department of Motor Vehicles when a replacement title is needed.
• Notary bond-ensures a Notary will fulfill all obligations to protect the public from financial harm resulting from any wrongdoing on their part when performing notarial duties.
• Mortgage Broker bonds- protects borrowers from improprieties taken by mortgage brokers and ensured that mortgage brokers adhere to state regulations
• License and permit bonds-required by a municipality or other public entity as a condition to granting a license or permit to engage in a specific activity. This bond guarantees that the party seeking the bond will comply with the applicable laws or regulations.
• Court bonds- a bail bond, an agreement by a criminal defendant to appear for trial or pay a sum of money sent by the court.
• And many others
  

We only write with companies have an A rating or higher by AM Best, so you can be sure your bond company will be there to respond when you need them!