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Commercial Bonds

Commercial Bonds

What are commercial bonds?

During the course of business, you may find a requirement of a project to include purchasing a bond. Bonds exist for a number of various scenarios, but they can be broken down into two major categories: Surety Bonds, and Fidelity Bonds.

Surety Bonds

A Surety Bond is an agreement that provides monetary compensation to a third party (obligee) if the insured party (Principal) fails to perform acts within a specific period.

 

Fidelity Bonds

A Fidelity Bond protects the employer from dishonest acts caused by employees that can come from the acts of embezzlement, theft, burglary and forgery. This may be directed to the employer or to the business clients that have entrusted them with access to their home or business.

 

Other Bonds

There are many types of bonds that offer protection depending on your needs and the requirements of other in the form of guarantees.

 

Contract Performance and Payment Bonds

A contract bond guarantees the performance of a contractor, while a payment bond guarantees that bills incurred by a contractor for labor and materials will be paid in accordance with the terms of the contract.

 

License and Permit Bonds

These are bonds, required by federal, state, and local municipalities, that guarantee performance of the laws, regulations, or ordinances relating to what’s covered by the license or permit.

 

Miscellaneous Bonds

Miscellaneous bonds are those that don’t fit well under the other commercial surety bond classifications. They often support private relationships and unique business needs.

 

Court and Fiduciary Bonds

These bonds guarantee a person or organization will faithfully perform certain duties prescribed by law or the courts, or they demonstrate financial responsibility for another’s benefit until the final outcome of the court’s decision.

 

Public Official Bond

This bond guarantees the faithful performance of the duties of a public official and an honest accounting of all the public funds handled by that person.

 

SBA Bond Guarantee Program

The U.S. Small Business Administration’s (SBA) Surety Bond Guarantee Program, with cooperation from the surety industry, helps small construction companies obtain required bonds on federal, state, local, and commercial construction projects and on service and supply contracts and subcontracts. Small and emerging contractors grow by increasing contracting opportunities, especially in public sector construction.

 

Notary Bonds

Notary bonds protect the consumer or individual receiving the bond from any errors or omissions made by a notary public. This bond also ensures against any unethical behavior or dishonesty on the part of a notary public during the course of business.

 

ERISA Bonds

In 1974, the U.S. Employee Retirement Income Security Act (ERISA) was enacted to regulate most types of employee benefit plans. The ERISA bond is required to protect the participants and beneficiaries from dishonest acts of the person(s) who handles the plan assets.

 

Business Service Bonds

Business service bonds protect a business from any loss incurred from dishonest acts by the employees against clients and customers.

 

Labor Union Wage and Fringe Benefit Bonds

Guarantees payment of wages to any and all union members furnished to a contractor (principal) by the union (obligee), and/or payment to the union’s fringe benefits fund of all sums required of the contractor.

 

Commercial Crime Bonds

This includes a blanket fidelity bond issued in a stated amount on all regular employees of commercial establishments covering against loss from employees’ dishonest acts and/or a forgery bond which protects against loss from forgery or alteration of instruments such as checks, drafts, or notes.

 

Don’t see a bond you need?

Don’t worry, we’re still able to help you out. Give us a call today 248-427-9400 and we’ll work with our network of carriers to find the exact bond you need.

What are commercial bonds?

During the course of business, you may find a requirement of a project to include purchasing a bond. Bonds exist for a number of various scenarios, but they can be broken down into two major categories: Surety Bonds, and Fidelity Bonds.

Surety Bonds

A Surety Bond is an agreement that provides monetary compensation to a third party (obligee) if the insured party (Principal) fails to perform acts within a specific period.

 

Fidelity Bonds

A Fidelity Bond protects the employer from dishonest acts caused by employees that can come from the acts of embezzlement, theft, burglary and forgery. This may be directed to the employer or to the business clients that have entrusted them with access to their home or business.

 

Other Bonds

There are many types of bonds that offer protection depending on your needs and the requirements of other in the form of guarantees.

 

Contract Performance and Payment Bonds

A contract bond guarantees the performance of a contractor, while a payment bond guarantees that bills incurred by a contractor for labor and materials will be paid in accordance with the terms of the contract.

 

License and Permit Bonds

These are bonds, required by federal, state, and local municipalities, that guarantee performance of the laws, regulations, or ordinances relating to what’s covered by the license or permit.

 

Miscellaneous Bonds

Miscellaneous bonds are those that don’t fit well under the other commercial surety bond classifications. They often support private relationships and unique business needs.

 

Court and Fiduciary Bonds

These bonds guarantee a person or organization will faithfully perform certain duties prescribed by law or the courts, or they demonstrate financial responsibility for another’s benefit until the final outcome of the court’s decision.

 

Public Official Bond

This bond guarantees the faithful performance of the duties of a public official and an honest accounting of all the public funds handled by that person.

 

SBA Bond Guarantee Program

The U.S. Small Business Administration’s (SBA) Surety Bond Guarantee Program, with cooperation from the surety industry, helps small construction companies obtain required bonds on federal, state, local, and commercial construction projects and on service and supply contracts and subcontracts. Small and emerging contractors grow by increasing contracting opportunities, especially in public sector construction.

 

Notary Bonds

Notary bonds protect the consumer or individual receiving the bond from any errors or omissions made by a notary public. This bond also ensures against any unethical behavior or dishonesty on the part of a notary public during the course of business.

 

ERISA Bonds

In 1974, the U.S. Employee Retirement Income Security Act (ERISA) was enacted to regulate most types of employee benefit plans. The ERISA bond is required to protect the participants and beneficiaries from dishonest acts of the person(s) who handles the plan assets.

 

Business Service Bonds

Business service bonds protect a business from any loss incurred from dishonest acts by the employees against clients and customers.

 

Labor Union Wage and Fringe Benefit Bonds

Guarantees payment of wages to any and all union members furnished to a contractor (principal) by the union (obligee), and/or payment to the union’s fringe benefits fund of all sums required of the contractor.

 

Commercial Crime Bonds

This includes a blanket fidelity bond issued in a stated amount on all regular employees of commercial establishments covering against loss from employees’ dishonest acts and/or a forgery bond which protects against loss from forgery or alteration of instruments such as checks, drafts, or notes.

 

Don’t see a bond you need?

Don’t worry, we’re still able to help you out. Give us a call today 248-427-9400 and we’ll work with our network of carriers to find the exact bond you need.

You know your business,
We know how to protect it.

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