Bonds

What exactly is a bond?

A bond in layman’s terms is a way to secure a debt.

It is a way of you the consumer, being able to put up a little cost up front that says “I am letting you borrow this money so as to your agreement to pay the face value of said bond if ever needed”. In the real world, bonds can be issued by a government, municipality, corporation, federal agency and other entities.

In the insurance world a lot of times you will see bonds requested in the following ways:

Surety Bond

A surety bond is a contract between three parties. The person who is the recipient of an obligation, the primary party who will perform the contractual obligation, and the person who assures the obligation will be done.

Lost title Bond

When a vehicle does not come with a title and you need a way to ensure proof of ownership you need a bond. A Title Bond can also be used to register a vehicle, get insurance, or sell the car without issue. Our agents can work with you and your vehicle to provide a proof of ownership. These bonds are a type of surety bond. They provide a proof and guarantee of ownership to the Department of Motor Vehicles.

Auto Dealership Bonds

Auto dealer bonds (also known as car dealer bonds) are a form of license and permit bond intended to provide protection for the state and for individual consumers. Specifically, these bonds provide protection against financial loss resulting from the unlawful or unethical behavior of the dealer.

Contract Surety Bond

Contractor bonds are one of the most “popular” bonds you will see asked for in the insurance space. Contract bonds are used in the construction industry by general contractors. They are a guarantee to a project’s owner that the general contractor will adhere to the contract put in place.

License and Permit Bonds

These types of bonds function as a guarantee to a government entity that a company will comply with a statute, state law, ordinance, etc.

Some examples are but not limited to:

  • Contractors License Bonds
  • Tax Bond
  • Environmental Bonds
  • Broker’s Bonds
  • Motor Vehicle Dealer Bonds
  • ERISA Bonds

Our job as an independent insurance provider is to help you navigate a cumbersome system in finding the best fit for your bond requirements. We can help you find your bond needs, provide you with your bond, and help you get it to the party requesting.

Call our office today or head over to our quotes page to get started!