If you do business with various government institutions or agencies on a regular basis, then you will quickly find that they will require you to have a surety bond in place.
What is a surety bond?
A surety bond is an agreement that is usually required for monetary compensation for failure to perform specified acts. A surety bond is the generic name for many different sorts of bonds.
There are three parts to almost every surety bond:
- The obligee: The obligee is the entity that is requiring the bond.
- The principal: The person who will perform the obligations set forth according to the contract.
- The surety: The entity that will be insuring the bond or otherwise, who assures the obligee that the principal can perform the task.
Commercial Surety is just another way we here at LF Insurance Group can help both big and small surety bond needs by assisting the large companies to small, local businesses. Industries we service include coal/mining, financial institutions, healthcare, manufacturing, public utilities, retailers, service contractors, technology, telecommunications and transportation.
Examples of bonds we write to clients include:
- Contractor’s License Bond: This bond guarantees that the contractor will comply with all statutes and licensing regulations that the state has set forth in the bond form. This is probably the most common type of Surety Bond.
- Fidelity Bond: This bond is the same as crime insurance, providing coverage for business owners. This will pay for losses or damage to money, securities and other property resulting directly from theft or forgery by an employee.
- Mortgage Broker Bond: Required by state governments, this type of bond ensures that consumers can seek recourse for financial losses if they are wronged by a mortgage loan originator during a mortgage transaction.
- And many more…
We understand that obtaining your bond is a very important step for you to go into business or keep your business moving forward.
Call us with any questions about Insurance or schedule an appointment. Let LF Insurance help you secure your future with the right Insurance policy. 303.422.2018