Bonds
are agreements pledging surety for financial loss caused to
another by the act or default of a third person or by some contingency
over which the third person may have no control. In the course of your
business operations, you may be required to purcahse many different
types of bonds. In the event of a loss, the Insured is required to
reimburse the bonding company. We are able to write many types of
bonds, including the following:
ERISA:
Required for benefit plans such as 401(k)s and
Pensions.
Notary
Public: Required when performing Notary Public
duties.
License
and Permit: Bonds required by a regulatory
agency to obtain a permit. An example would be a Liquor bond for a bar.
Nuclear:
If your business operations involve a certain
amount of nuclear material (such as used in medical diagnostic
equipment), then you may be required to have a Nuclear Safety bond.
Bid
and Performance: These bonds are mostly for
contractors and are required when bidding a job as well as
completing a job.
Residents'
Fund: A bond for the personal funds of
patients.
Other:
There are many other types of bonds. Contact
us if you are in need of a specific bond not
listed here.
Other
Items of Consideration
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Small Business Insurance: Bonds are not insurance. Make sure that your
Liability and Property exposures are properly covered.
Large Business Insurance: Bonds
are not insurance. Make sure that your Liability and Property exposures
are properly covered.
Special Events:
If
you need a bond because of an event you are holding, such as a raffle
or bingo bond,
make sure that you have Liability coverage for that event as well if
necessary.
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| If you are
interested in a quote for any of these lines of insurance or are still
unsure about what exactly your business might need, please contact us. |
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| Is a bond an insurance policy? |
No,
a bond is different from insurance. With an insurance policy, you
are personally transferring risk to a third party (the insurance
company). This means that you are protected from incurring costs
associated with whatever the insurance policy covers. You are not
fiscally responsible for these costs; the insurance company is.
Bonds, however, are surities issued on your behalf. The purpose of a
bond is to provide a guarantee of payment. The financial responsibility
of a loss is still yours, but the bonding company will pay on your
behalf if you are unable. |
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