Business Insurance > Bonds

Many different types

A bond is an instrument that backs the honesty of the purchaser, and there are hundreds of types of bonds. A small village may require a contractor to purchase a license and permit bond for any work done within the city limits. If a contractor accepts a down payment but doesn’t complete the work, the customer, after complaining to the village, can file a claim under that bond. This is an example of a License and Permit bond.

A project owner, worried that a contractor won’t complete a construction project by the time snow falls, for example, may require a Performance Bond. This bond requirement might not only include the completion date, but also a detailed job description or a local labor requirement. Any failure to adhere to this agreement could result in a claim being filed against the issuing insurance company.

A janitorial company, cleaning offices after hours, might consider a Business Services bond. This type of bond would protect their customer if a theft of property occurs under the company’s watch.

Bonds are unique in that, after a claim, the bond company will go after its customer for reimbursement. With this in mind, it’s important that the customer has the financial ability to reimburse the company if a claim is filed and paid. However, bond claims are extremely rare.

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A good relationship with a bond company can be important. The longevity of this relationship can result in bond premiums that decrease over time. Request a quote

  • Ken C., customer since 2012

    We've known Jeff for many years and have sought his advice when we needed it. He has always been there for us.

    Ken C., customer since 2012

    Ken C., customer since 2012