Bonds

What exactly is a bond?

A bond in layman’s terms is a way to secure a debt.

Bonds can be issued by a government, municipality, corporation, federal agency and other entities.

In the insurance world a lot of times you will see bonds requested in the following ways:

Surety Bond

A surety bond is a contract between three parties. The person who is the recipient of an obligation, the primary party who will perform the contractual obligation, and the person who assures the obligation will be done.

Lost Title Bond

These bonds are a type of surety bond. They provide a proof and guarantee of ownership to the Department of Motor Vehicles. When no other form of documentation is available a Lost Title Bond shows the DMV that you are the “owner” of said vehicle.

Contract Surety Bond

Contractor bonds are one of the most “popular” bonds you will see asked for in the insurance space. Contract bonds are used in the construction industry by general contractors. They are a guarantee to a project’s owner that the general contractor will adhere to the contract put in place.

License and Permit Bonds

These types of bonds function as a guarantee to a government entity that a company will comply with a statute, state law, ordinance, etc.

Some examples are but not limited to:

  • Contractors License Bonds
  • Tax Bond
  • Environmental Bonds
  • Broker’s Bonds
  • Motor Vehicle Dealer Bonds
  • ERISA Bonds

Our job as an independent insurance provider is to help you navigate a cumbersome system in finding the right bond for your requirements.

Call our office today or complete the form below to get started!

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