Michael Warren Insurance Agency

Expert Bond Services in Pembroke Pines, Florida

Any type , Any Size of Surety Bond

What is a Surety Bond?

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Surety bonds are a type of financial guarantee that involves three parties: the principal, the surety, and the obligee. The principal is the individual or business that needs the bond, the surety is the insurance company that backs the bond, and the obligee is the entity that requires the bond, often a government body or a private sector entity. These bonds are designed to ensure compliance with laws, regulations, or specific contract terms. If the principal fails to meet their obligations, the surety bond provides financial compensation to the obligee, protecting them from losses due to the principal’s non-compliance or default. 

The purpose of surety bonds varies across different contexts. They are commonly used in the construction industry, where they guarantee that contractors will fulfill their contractual obligations, like completing a project on time and within budget, or paying subcontractors and suppliers. 

In other industries, surety bonds function as a trust mechanism, ensuring businesses adhere to industry regulations and ethical standards. This includes license and permit bonds for various professionals and businesses, probate bonds in legal contexts, and fidelity bonds to protect against employee dishonesty. Overall, surety bonds serve as a critical tool for risk management and confidence-building among parties engaged in business agreements or regulated activities.

Types of Surety Bonds

Dishonesty or Fidelity Bonds

  • Protecting businesses and customers from employee theft
  • Importance for service-oriented businesses

Contract Bonds

  • Essential for construction work
  • Types: bid, performance, payment, maintenance

License and Permit Bonds

  • Ensuring compliance with laws for contractors, builders, etc.

Contract Bonds

  • Detailed information and requirements
  • Project-based work bonds: bid, performance, payment, supply

License & Permit Bonds

  • Legal requirements for operating certain businesses
  • Importance for health clubs, liquor distributors, auto dealers

Federal Government Bonds

  • Bonds for federal agency requirements
  • Types: immigration, freight broker (BMC-84), alcoholic beverages

Probate Bonds

  • Court requirements for various roles
  • Executor, administrator, personal representative, guardian, fiduciary

Fidelity Bonds

  • Protection against employee dishonesty or theft
  • Significance for businesses, even without government mandate

Miscellaneous Bonds

  • Covering unique and diverse needs
  • Public official, workers’ compensation, utility deposit, self-insurers

A Surety Bond is a promise to be liable for the debt, default, or failure of a party. It involves three parties. The surety guarantees the performance or obligations of the principal to a third party or obligee. There are different types of bonds including:

Dishonesty or Fidelity Employee theft bonds Protect business owners and their customers from theft of property by employees. Employee dishonesty bonds are most often needed for businesses that perform services on their customers’ premises, such as janitorial services companies or home health providers.

Contract bonds are usually for construction work and include bid, performance, payment, and maintenance bonds.

License and Permit Bonds guarantee the licensee will operate in conformity with general laws. This is usually for contractors and builders as well as others.

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Commercial Package Policies (CPP)

combine two or more individual coverages. It may include commercial property, commercial general liability, professional liability, commercial auto, inland marine, crime, employee dishonesty, liquor liability, pollution liability, or farm as examples.