Surety Bonds (Commercial & Miscellaneous)

The commercial surety bond class is made up of simple, transactional bonds that do NOT contain contract performance guarantees. License and permit bonds, public official bonds, court bonds and miscellaneous surety bonds are the major categories of this class. Bonds under $25,000 generally require only a completed application to underwrite. Larger surety bond requests and those bond obligations that contain language or provisions that are onerous to the surety company will require review of personal and business financial statements. Surety bonds are essentially unsecured credit instruments therefore personal credit is an important factor in certain underwriting and rating decisions. We offer non-standard program access to applicants that may have damaged credit or may not have had the opportunity to develop a consumer credit history. We decline no application, but rather offer terms that fit each applicant.

Bid, Payment & Performance Bonds

The contract surety bond class is made of of those bonds that do not fit into the commercial bond class and that guarantee obligations related to specific contracts. There are four types of contract bonds. A bid bond Is a bond which provides financial assurance that the bid has been submitted in good faith, that a contractor will enter into a contract at the amount proposed, and will provide the appropriate performance and payment bonds if so required. These bonds are used by obligees (project owners) to pre-qualify contractors that submit proposals. A performance bond guarantees performance of the terms of a contract. These bonds frequently incorporate payment bonds (labor and materials) and maintenance bonds as part of the contract surety bonding package. Bonding protects the project owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions. A payment bond guarantees the payment of subcontractors, laborers, and materials suppliers associated with the project. Payment bonds are issued for the protection of those parties that supply labor or materials and to eliminate the likelihood that they will file mechanic's liens against the project property. A maintenance bond guarantees upkeep (maintenance) of the completed project for a specified period of time after completion. These bonds provide protection for defective workmanship and/or materials. Keeping up with the legal cases and construction sector-specific happenings is imperative. Visit our general contractor news feed.

Fidelity Bonds ~ Commercial Crime Policies

A fidelity bond, also known as a commercial crime policy, is an insurance coverage that protects a business enterprise from the dishonest acts of its employees. In the case of a third party fidelity bond a special 'on premises' coverage part protects an third party client from similar acts committed by the contracting company's representatives. A third type of fidelity bond is an ERISA bond. This instrument was created to specifically address the mandatory coverage requirements for pension and defined benefit plans under the Employee Retirement Income Security Act. Surety One, Inc. offers first, third party fidelity and ERISA fidelity bond coverage on both admitted and surplus lines bases.