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Bonds

We will provide you with a FREE No-obligation quote for any of your insurance needs. Click the Request Quote button for more information:

A bond is a contract under which one party binds himself financially for the performance by another of an agreed-upon obligation.

Surety bonds are the assumption of responsibility by an insurer for the fulfillment of another party’s obligations. Fidelity bonds guarantee the honesty of the principal. Common bonds are:

Bid – This type of bond is a guaranty to the person asking for the bids that, if the contractor’s bid is accepted, he will sign the construction contract and furnish a performance and payment bond.

Performance and Payment Bonds – Should the bid be accepted, or a contract signed to perform the work, the insurer agrees that the contractor will live up the contract, or they will pay the additional expense involved in getting a second contractor to complete the job. The insurer will also pay losses represented by the delays in finishing the project.

License and Permit Bonds – These bonds are required by federal law, by state law, by municipal ordinance, or by regulation as a condition to be fulfilled before the granting of a license to engage in a particular business or the granting of a permit to exercise a particular privilege. A wide variety of license and permit bonds are written to insure that laws and regulations pertaining to a certain business will be followed – detectives, electricians, funeral directors, public accountants, demolition consultants, etc.

Notary Bonds – A notary is considered to be a public official and must observe the laws of the state within their jurisdiction. A notary public bond protects the people in the even that the notary makes an error.

Real Estate Bonds – This is the amount of money paid by the tenant as a form of security against any future breaches of the security agreement.

ERISA Bonds – In 1974, the Employee Retirement Income Security ACT (ERISA) was enacted to regulate most types of employee benefit plans. This Act requires a fidelity bond covering the fiduciary (those responsible for managing the plan) and the person who handles funds or other property of such a plan. The coverage is intended to protect the plans from dishonesty and fraud committed by individuals who are associated with them.

Employee Dishonesty Bonds – These bonds guarantee that the bonded employee(s) will handle their employer’s money and property with fidelity.

 

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