Key Point: Regardless of the type of Surety Bond you may need, keep in mind a Surety Bond will almost always focus on obligations people/businesses have to one another. A good example. A company/individual may need to secure a Surety Bond in the event a project owner (principal) requires assurance that a contract be completed without default. Typical bonds might include:
- Bid Bonds
- Payment Bonds
- Performance Bonds, and
- Ancillary (or secondary) Bonds
A construction contractor may be required to submit a Bid Bond prior to simply bidding on a project.
A contractor may be required to have a Payment Bond guaranteeing that material suppliers and subcontractors are paid on a project.
Performance Bonds focus on the terms of a project, which might include completion time and costs. This type of bond, and other similar types of bonds, warrants the principal party offering a contract does not sustain a financial loss in the event a contractor is unable to complete a project.
An Ancillary (or secondary) Bond focuses on issue that could be best described as 'incidental', but vital to the successful completion of a contract.
There are literally hundreds, if not thousands, of surety bonds by definition. Pick almost any letter of the alphabet and there is a good chance a bond is available. Examples include: Advance Payment Bonds; Business Services Bonds; Commercial Surety Bonds; Debt Management Surety Bonds; Escrow Agent Surety Bonds; Freight Broker Surety Bonds; Garnishment Surety Bonds; Home Inspector Surety Bonds; Inspection Agency Surety Bonds; Judicial Surety Bonds; Kickboxing Surety Bonds (Mixed Martial Arts Operators); Liquidator Surety Bonds; Mechanics Lien Release Surety Bonds; Notary Surety Bonds; Oversize and Overweight Haulers Surety Bonds; Permit Surety Bonds; Qualified Intermediary Surety Bonds (company or individual facilitating 1031 exchanges); Replevin Surety Bonds (a court surety bond); Sequestration Surety Bonds; Travel Agent Surety Bonds; Utility Surety Bonds; Vehicle Verifier Surety Bonds; Wine Surety Bonds; Yacht Broker Surety Bonds.
A fidelity bond is a form of insurance protection that covers policyholders for losses that can incur as a result of employee dishonesty, fraud or embezzlement, theft, or negligence. It is common for a business t insure against losses caused by the dishonest acts of its employees. Protection of an employer from employee-dishonesty can include a loss of company monies, securities, accounting records, investment funds, and other property from employees who intentional seek to cause a company loss. Contact Insure Idaho to see if it makes sense to cover all employees (blanket coverage) or a single individual whose primary responsibility is working with company finances, banking and related activities (often times referred to as a Schedule Fidelity Bond). There are also many various forms of additional crime-related policies such as burglary, general theft, disappearance, fraud, and forgery, just to name a few.
Contact Insure Idaho online or call us at 208-947-9777 if you have any questions about bonds.