After this navigation update, we will be updating our state by state guides for Mortgage Broker Bonds, and Auto Dealer Bonds.  Please check back for these updates and more information.

Typically the caller is a little confused on what a surety bond is, they simple googled “bonded”, and bunch of bond agencies appear.  A surety bond is a three party agreement that guarantees something, in this system the obligee is requiring the principal to obtain a surety bond.  Typically the obligee will provide a bond form that should be used.  A surety bond guarantees services such as construction or electrical contracting and licensing required by the government.  In these cases the bond is guaranteeing that these services will be completed and done so in a proper manner.  Bonds are specific to job license or project.

E&O insurance is very similar to a surety bond, but provides more blanket coverage.  Errors and Omissions provide financial protection performed or not performed.

 

 For those wishing to apply, our online application can still offer instant quotes while we are away.  If you are search of information, take a look at the surety bonds we offer, or our surety bond FAQ.

Please explore our website to learn all about the Surety Industry, along with surety bond information by business type.

Also be sure to fill out an surety bond application, it is easy to do as everything can be completed online, and instant quotes are available.

If you have questions, please give us a call at (866) 450-3412. One of our agents will get back to as soon as we return on Monday the 25th.

Just because we are closed does not mean you are stuck. Please visit our site and learn about all the surety bond types, and when you are ready apply use our online surety bond application.

We thank you for the ability to serve you and wish you Happy Thanksgiving.

 

Think of Contract Bonds like a contractor for your building or dwelling. Contract bonds gives protection on specific contracts by assuring the project owner, or obligee, that the contractor, or principal, will guarantee performance on specified contract. The contractor shall work and pay laborers, sub-contractors and suppliers for material. Some major sub-categories for contract bonds are as follows:

1. Bid Bond is a guarantee that the contract, once awarded, will be performed at the bid amount. The bonding company, or agent, will underwrite the bond and provide the performance. The bidder becomes the contractor, or principal if awarded the contract. If required, the agent also provides payment and maintenance bonds.
2. The contractor will perform a contract under terms and conditions of its Performance bond. Simply stated, the principal shall complete the work under the terms and conditions of the contract.
3. The principal shall pay material suppliers, laborers and sub-contractor(s). Payment bonds guarantee this will happen. In some instances, the principal shall not be paid until all others are paid.
4. Maintenance bonds guarantee that materials and craftsmanship is acceptable to the obligee. Maintenance shall be performed after a specified amount of time due to lack of craftsmanship or defective material or the like.
5. Subdivision bonds guarantee improvements nearby, such as curbs, sidewalks, sewer and gutter; be it replacement or new construction. The principal shall promise to finance and construct items listed in this bond. Subdivision bonds may include construction and financing of traffic lights, drainage systems, streetlights, etc.

Commercial Bonds guarantee the principal listed on the bond will perform as specified in the bond. These are much different than the contract bonds, as you will notice just by their bond types.

1. License and permit bonds guarantee the operator shall be licensed. The licensee such as an auto dealer bond, telemarketing bond, mortgage broker bond shall perform to the terms set forth in each specific bond. 
2. Public official bond is that of the performance of a public official is guaranteed.
3. Miscellaneous Bonds guarantee lost securities. This sub-category bond includes but is not limited to utility payments, union fringe benefit contributions, workers compensation and certain leases.

There are many other sub-category bonds in both contract surety bonds and commercial surety bonds and to numerous to mention. The sub-category bonds each have their own different type of surety bond to offer. For instance there are literally hundreds of bond types in License and Permit Bonds alone. It is common that agents may deal with a sub-category bond for which they never came across before.

 

 

Perhaps the reason it is useful to know about these different bonds is that each bonding company underwrites each sub-category differently. The industry defines this terminology as “language�. The requirements for each sub-category have as many similarities as there are differences.

Our hope is that this new resource will once again save you time, and make the process a little easier.

Pending
Alaska: House Bill 825 would require a $15,000 License bond for private investigators (or E&O insurance).
Pennsylvania: House Bill 825 if passed would require licensure and bonding of private investigators.

Dead Bills
Colorado: House Bill 1083 would have required private investigators to obtain a surety bond, or an E&O policy, in the amount of $100,000.