Surety bonds are different than insurance, but often equally important in guaranteeing financial security for your business. Surety bonds help ensure that a principal acts honestly and with integrity, maintains financial responsibility, and complies with laws and contracts. Our portfolio of surety bonds includes contract bonds, commercial bonds, court bonds and fidelity bonds.
Ensure a Contractor can Fulfill the Statement of Work: Contract Bonds
Contract bonding includes background checks and review of CPA-prepared financial records provided by the contractor and/or owner(s) for both business and personal assets. Contract Bonds, a category which includes Bid Bonds, Performance Bonds, Payment Bonds and Maintenance Bonds, guarantee that if a bid is awarded the contractor will enter into and fulfill the terms of the contract, including completing all work to specifications and paying for all outlined labor and materials.
Protect Your Business from Losses due to a Court Decision: Court Bonds
Court Bonds are also known as Judicial or Court Surety Bonds. They may cover the costs of making an appeal (Cost Bonds), buffer a sheriff or marshal if a suit is brought by someone whose property is seized, pay damages suffered by the plaintiff if a case goes to the defendant (Plaintiff’s Bonds, Attachment Bonds) or guarantee that seized property will remain in the same condition and will not be sold or disposed of (Replevin Bonds).
Probate or Fiduciary Bonds protect interested parties against loss due to failure of the fiduciary (i.e. an Executor, Guardian, Administrator or Conservator) to properly perform their lawful duties and obligations while administering an estate or managing assets for a minor or incapacitated person.
Protect against Employee Theft: Fidelity Bonds
Employee theft does occur, despite background checks and supervision. Fidelity Bonds cover employee theft occurring in both your and your customer’s businesses. Fidelity bonds are important when one or more employees is trusted with handling cash or other high worth assets.
- Business services bonds cover the loss of a customer’s money, equipment, supplies and personal belongings through theft or other dishonest acts by your employees while on the customer’s premises. Business services bonds work well for cleaning services, contractors, pet caregivers and house sitters.
- Standard employee dishonesty bonds protect your business from financial loss due to fraudulent activities by an employee, like taking money or securities. Non-profit organizations and professional offices including CPAs, dentists and physicians are good candidates for employee dishonesty bonds.
- The Employee Retirement Income Security Act of 1974 (ERISA) requires trustees of pension plans to have fidelity bond coverage equal to at least 10% of the total plan’s assets. ERISA bonds protect participants and beneficiaries from dishonest acts of a fiduciary who handles employee benefit or pension plans, including 401(k)s.
Ensure Contractors Follow Governmental Regulations: Commercial Surety Bonds
Generally required by state laws and statutes, commercial surety bonds guarantee some aspect of a principal’s occupation. Commercial surety bonds are extremely industry specific: