Bonds

Surety Bonds

Surety Bonds serve to protect the obliged party against losses that result from the failure of the principal to meet their obligation. A surety bond is an agreement amount three parties, who are identified by the following terms:

Principal: a party that has a responsibility to perform some obligation

Obligee: a party that will benefit from the principal performing the obligation

Surety: the party that promises to pay the obligee if the principal fails to perform the obligation 

A common type of a Surety Bond would be a License and Permit Bond. License and Permit Bonds are a type of surety bond, sometimes referred to as “license bonds”. License and permit bonds are required by government agencies as a pre-licensing requirement for a number of different businesses.

A License and Permit bond guarantees that a business will operate in accordance with federal, state, or local laws and regulations. Each license bond is specific to one industry, and protects customers and/or the state from damages. Most commonly, license bonds protect governments and consumers from fraudulent practices committed by the business that is bonded. In any industry that requires bonding, each business must be licensed and bonded before they are allowed to legally operate.

Underground Storage Tank Surety Bonds (UST Bonds)

Many states have implemented programs to comply with the US Environment Protection Agency (EPA0 regulations and financial responsibility requirements to ensure that underground storage tanks (USTs) are in safe working order to protect both drinking water and human health. Gas stations, convenience stores, and local governments having underground tanks that store petroleum must comply with financial responsibility requirements set forth in state and federal regulations. The purpose of the financial responsibility requirement is to ensure that owners/operators have the financial means to clean up spills and overfills, repair or replace leaking corrosive tanks and lines, and provide compensation for third parties if any bodily injury or property damage occurs.

Underground Storage Tank Surety Bonds (UST Bonds)

Many states have implemented programs to comply with the US Environment Protection Agency (EPA0 regulations and financial responsibility requirements to ensure that underground storage tanks (USTs) are in safe working order to protect both drinking water and human health. Gas stations, convenience stores, and local governments having underground tanks that store petroleum must comply with financial responsibility requirements set forth in state and federal regulations. The purpose of the financial responsibility requirement is to ensure that owners/operators have the financial means to clean up spills and overfills, repair or replace leaking corrosive tanks and lines, and provide compensation for third parties if any bodily injury or property damage occurs.

Fidelity Bonds

Fidelity bonds are insurance protections that cover policyholders for losses that they incur as the result of fraudulent acts performed by specified individuals. These bonds cover theft, forgery, fraud, and other criminal acts by employees that affect your business or your clients.

Fidelity bonds can also protect against dishonest employees. These are referred to as Employee Dishonesty bonds and protect you or your business against forgery, identify theft, illegal electronic funds transfer, or unlawful data access.

Probate Bonds

A probate bond is a type of court bond that ensures the wishes of a deceased person are carried out ethically and honestly. If an error does occur, the bond promises you will compensate the beneficiaries for any money lost. Probate bonds are also called Fiduciary bonds.

There are 3 types of Probate Bonds:

A Guardianship bond ensures that the guardian will make sound decisions for the benefit of a child. The guardian should make an honest accounting of the inheritance of the child.

An Executor bond, on the other hand, ensures that the executor of the estate carries out the wishes of the person who has passed on, especially when it comes to the distribution of property. The executor must pay off any debts to creditors, distribute assets to beneficiaries and pay estate and probate taxes.

A Testamentary Trustee bond ensures that the trustee will handle the financial affairs of the trust properly. The trustee can make decisions about how to handle property and assets for the benefit of the beneficiaries. The bond ensures that the trustee will follow what is in the agreement.

There are many other bonds that are needed for various business and entities.  Please call us, we will be happy to help with any of these requests. 

Interested in a Quote?

Request a Quote