Surety & Fidelity Bonds For Your Business

Business bonds are much like insurance in that they back up a promise to do something. If this promise is broken, the bond pays off to complete the promise. Surety and fidelity bonds are the two most common types of business bonds needed, depending on the type of work your business conducts. Certain business-related activities will require that you acquire a bond, and Elite Insurance Solutions can help you assess whether or not a surety or fidelity bond is necessary. If deemed necessary, we will help you locate the best bond for your business.

What Is A Surety Bond?

A surety bond is a bond given to protect someone against loss should the terms of a contract not be filled. In this case, the surety company would assume liability for nonperformance and would find another contractor to complete the contract or compensate the bond’s owner for the loss. Any federal construction contract valued at $150,000 or more requires a surety bond when bidding or as a condition of contract award. Likewise, many service contracts and some supply contracts require surety bonds. Most state and municipal governments will require them as well.

There are four types of surety bonds:

1. Bid Bond: Ensures the bidder will enter into the contract and supply the agreed payment and performance bonds if awarded the contract.
2. Payment Bond: Ensures suppliers and subcontractors get paid for work performed.
3. Performance Bond: Ensures the contract will be completed as stated in the terms and conditions.
4. Ancillary Bond: Ensures that requirements integral to the contract are performed.

What Is A Fidelity Bond?

A fidelity bond covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals—usually employees whose misconduct (dishonesty, theft, or embezzlement) has resulted in loss for a company. These bonds may apply to one employee or can cover the actions of all employees. Whether or not you want or need a bond will depend on the kind of work your business conducts. Contractors, manufacturers, and suppliers commonly maintain fidelity bonds.

Have questions about surety and fidelity bonds? Or do you have other business insurance needs? We provide a range of business coverage, including health, auto, workers’ compensation, directors & officers insurance, errors & omissions insurance, kidnap & ransom insurance, marine insurance, foreign liability insurance, and retirement plans.

For more information, visit our Locations & Contact page and find the Tennessee location and agent nearest you.

 

Could your company benefit from the extra protection provided by kidnap and ransom insurance? Ask us for more information about this special business insurance to be sure you and your employees have the coverage you need.

Request A Quote








Follow Us


Testimonials

“Brian, Again, having you involved with our insurance needs has been a blessing. I never would have thought we needed an agent until the first time I spoke with you. You are great at keeping us informed, and I don't think you could possibly know how much of a relief it is to know that someone is helping us with all of our issues.” – Kevin Courville