Commercial Insurance

Surety Bonds

by Frank Smith Insurance

There are many different surety bonds and each are written with a different obligation and bond form.

What types of surety bonds?

  • License & Permit Bonds

  • Public Official Bonds

  • Probate & Other Court Bonds

  • Miscellaneous Surety Bonds

  • Contract Performance Bond

License & Permit Bond

This bond guarantees the Principal will complete any and all obligations and regulations established by Obligee. This is usually a government entity as City, Town or State. They grant a Privilege.

Types can include:

  • Electrical License

  • Plumber License

  • General Contractor

  • Sign Permit

  • Sales Tax

Public Official Bond

This bond guarantees that elected or appointed officers will perform their duties. Usually the bond amount as well as duties are unspecified by statue or ordinance.

Types can include:

  • Treasurers

  • Tax Collectors

  • Peace Officers

  • Judges

  • Hunting & Fishing License agents

  • Notaries

  • Real Estate Brokers

 Please note not all Public Officials need to be bonded.

A complete understanding of the job description, character of individual and experience are some of the underwriting aspects of this bond.

Probate and Other Court Bonds

A Probate bond guarantees an honest accounting and faithful performance of duties by fiduciaries/trustees. Estates of deceased, incompetent or minors are set up; these bonds are required by courts.

Types include:

  • Administrator

  • Executor 

  • Guardian

  • Conservator

  • Trustee 

This bond guarantees an honest accounting and performance of duties while managing and distributing assets.

Miscellaneous Bonds

These are the bonds that don’t fit into any other surety categories. These tend to be more hazardous obligations.

Possible Types:

  • Utility payment guarantees

  • Lost security/lost instruments

  • Union Wage and Welfare

These types of bond require tough underwriting as they may require more information as financial statements, additional forms and signatures may be requested.

Contract Performance Bond

As it states, contract bonds guarantee the performance of a written contract according to its terms and conditions.

Due to the nature of contract surety bonding, contract bonds require extensive underwriting and can be lengthy in quoting. It is best to contact Frank Smith Insurance at least one month before bidding on a contract.

Types of Contract Bonds:

  • Bid Bond

  • Performance Bond

  • Payment Bond 

A bid bond guarantees that is the contractor is the winning bid, they will enter into a contract and provide Performance bond.

A Performance bond guarantees the contract will be completed according to its terms and conditions.

A Payment bond guarantees payment of laborers, subcontractors and material supplies.

Please contact us at (508)675-5557 to provide you with a quote

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