or 305.330.4392  


Home Page

 

 

a drawing of a face Auto Insurance Home Insurance Life Insurance Commercial Insurance

Home > Commercial Bond Insurance Home
  • Main Menu
    • Home Page
    • Secure File Area
    • File a Claim
    • Make a Payment
    • Refer a Friend
    • Join Our Newsletter
    • Important Files
    • Insurance Glossary
    • Frequently Asked Questions
    • View our Blog
    • Location Map
    • Employee Directory
    • Contact Us
    • About Us
    • Privacy Policy
  • Content Pages
    • 401k
    • About Us
    • About Us Section
    • Annuities
    • Apartment Owners Insurance
    • Auto and Homeowners Insurance
    • Automobile
    • Aviation
    • Bonds
    • Business & Commercial
    • Church
    • Claim Information
    • Commercial Auto Insurance
    • Commercial Bond Insurance
    • Commercial Property Insurance
    • Commercial Umbrella Insurance
    • Condo Association Insurance
    • Condominium
    • Construction
    • Contractors Insurance
    • Customer Service Forms
    • Cyber Liability Insurance
    • D & O Insurance
    • Daycare
    • Dental
    • Disability Insurance
    • Earthquake
    • Employee Benefits
    • Employment Center
    • Errors & Omissions
    • Farm
    • Final Expense
    • Financial Services
    • Fixed Annuity
    • Flood
    • General Liability Insurance
    • Group Health
    • Header
    • Health
    • Healthcare Reform
    • High Value Home Insurance
    • Home Page
    • Home Page Content
    • Home Page Header Override
    • Homeowners
    • Hotel
    • Insurance
    • JavaScript Footer
    • Jewelry Insurance
    • Life
    • Life & Health Insurance
    • Limousine
    • Liquor Based Business
    • Long-Term Care Insurance
    • Malpractice
    • Medicare
    • Medigap Insurance
    • Meta Tags
    • Mobile Home Insurance
    • Mobile Website Header
    • Motorcycle
    • Nightclub
    • Non Profit Insurance
    • Off-Road Vehicles Insurance
    • Oil & Gas
    • Other
    • Partners Page
    • Personal Lines
    • Personal Umbrella Insurance
    • Pet Insurance
    • Privacy Policy
    • Professional Liability Insurance
    • Quote Forms
    • Real Estate Insurance
    • Recreational Vehicle
    • Referral Form
    • Rental Property Insurance
    • Renters
    • Restaurant
    • Restaurant, Bar, & Tavern Insurance
    • Retirement Plans
    • robots.txt Supplement
    • School
    • Senior Living
    • Special Events Insurance
    • Specialty Automobile
    • SR-22 Insurance
    • Stylesheet Supplement
    • Supplemental
    • Surety Bond
    • Tax
    • Term Life Insurance
    • Testimonials
    • Toy Vehicles
    • Travel
    • Trucking
    • Umbrella
    • Universal Life Insurance
    • Variable Life Insurance
    • Vision
    • Watercraft & Boat
    • Whole Life Insurance
    • Windstorm
    • Workers Compensation
  • Automobile
    • Automobile Insurance Home
    • Request ID Card for Auto Policy
    • Request Declaration and Coverages Page for Auto Policy
    • Add Vehicle to Existing Auto Policy
    • Auto Accident Claim
    • Auto Quote Form (short)
  • Homeowners
    • Homeowners Insurance Home
    • Homeowners Insurance Quote
    • Request Declaration and Coverages for Existing Homeowners Insurance Coverage
  • Renters
    • Renters Insurance Home
    • Renters Insurance Quote
  • Business & Commercial
    • Business & Commercial Insurance Home
    • Request ID Card for Commercial Auto Policy
    • Request Declaration and Coverages Page for Commercial Auto Policy
    • General Liability Quote Form
    • Builders Risk
  • Life
    • Life Insurance Home
    • Life Insurance Quote

Commercial Bond Insurance


Commercial Bond Insurance Information

Commercial Bonds Information

If you are a contractor, you want to promise your clients you’ll look after them if you can’t complete your work. One of the most assured ways to do so is through offering surety bond options. Bonds function as guarantees of compensation if you can’t keep your promises.

What is a surety bond?

A surety bond is like a guarantee of financial protection that a contractor promises clients.

Let’s say, for example, that you cannot complete a job. Any number of reasons might lead to this failure on your part. However, by failing in your contract, you might have an obligation to compensate the client for their losses. You aren’t the only one who stands to lose out, after all. With a bond, you’ll essentially guarantee your customer you’ll repay them.

With a commercial bond, a party in need will file a claim with the bond company. The company will then process the claim, and issue payment. In this way, a bond will function a lot like an insurance claim. Your clients won’t have to suffer because of your mistakes, so to speak.

How a bond differs from standard insurance

Still, there are some important ways that bonds differ from insurance. While they will offer a settlement to affected parties, they don’t necessarily guarantee financial protection to the bond carrier.

If a bond company pays a claim on your behalf, you still have a financial obligation. You must repay the bond company for the cost of the claim. So, in that regard the bond is different from your standard insurance. Rather than getting off scot-free, you’ll still face a potential for financial loss because you must repay your client.

Who are the parties in the Bond?

Bonds involve three parties:

  • The principal is you, the party who must carry a bond.
  • An obligee is generally your client, or another party who requires a bond.
  • The surety is the company issuing the bond.

Each party will interact differently in case of a claim. In some cases, the obligee files the bond claim, while in other cases it is the principal. In other situations, the surety company will pay the obligee directly, while others will pay the principal. The principal will then pay the obligee. Afterwards, the principal and surety will work together to settle the outstanding costs.

The benefits of carrying bonds

If you decide to carry a bond, you’ll create a better financial reputation for yourself and your company:

  • You’ll be able to promise your clients more compensation in case you can’t follow through with a contract. That will likely make you more trustworthy.
  • Many potential clients require businesses with whom they work to carry bonds. Therefore, to increase your ability to make contracts, consider bonded options your key.

Contact us today!

Contact us to learn more about planning your future with an annuity. We are happy to answer your questions and help begin your investment process today.

HomeAbout UsGet A QuoteContact Us
9053 Estate Thomas Suite 107 | St Thomas, USVI 00802 | 340.776.1906 | Fax: 888.467.4612 Powered by Insurance Website Builder