A bond is a written promise that an insurance company will protect your assets and back up the promises you made. No matter what type of business you engage in, chances are you will need some type of surety bond. From commercial surety to contract surety, Bilz Insurance can provide access to almost all types of bonds.
- License/Permit bonds may be required when you have been granted a license to engage in a particular business. Some examples are Fuel Dealer bonds, Highway and Street Permit bonds and Automobile Dealer bonds
- Court bonds are necessary in judicial proceedings in advance of a final decision by the court on the merits of the claim. An example of a court bond is Plaintiff Replevin bond.
- Fiduciary bonds are required when you have been appointed as Executor, Administrator, Guardian, Trustee or Receiver in a court.
- ERISA bonds are mandated by the Federal Government for 401(l) plans and pension plans.
- Public Official Bonds are required by law for certain government positions such as a Treasurer.
- Financial Institution Bonds cover the bank for issues of dishonesty and fraud.
Surety bonds are three party agreements where:
- The Principal (the contractor) has the primary responsibility to fulfill the bonded obligation.
- The Obligee is the beneficiary of the bond.
- The Surety (insurance company) act as a cosigner and therefore guarantees the Obligee that the Principal (the contractor) will meet his obligation.
- Bid Bonds are normally required with your bid to guarantee to the owner that you will enter in a contract and provide the required Performance and Payment Bonds if the job is awarded to you.
- Performance Bonds guarantee that you will complete the contract in accordance with the contract terms for the amount agreed upon and in the time specified.
- Payment Bonds guarantee that your suppliers, sub-contractors and labor force are paid.
- Maintenance Bonds guarantee the maintenance on the work performed. These bonds are usually run for one or two years after the bond contract is complete.