What is a Surety Bond?
A Surety Bond is a three-party agreement whereby the surety guarantees to the obligee (the project owner) that the principal (the contractor) is capable of performing the contract in accordance with the contract documents. Performance of the contract, which is the subject of the bond, determines the rights and obligations of the surety and the obligee.
Types of Surety Bonds Offered by Woods Insurance Agency
Fidelity bonds are forms of insurance that cover policyholders for losses that were results of fraud.
Fidelity bonds insure businesses for losses due to dishonest acts of employees. In the unfortunate event your employee steps outside your company values, you’ll have the peace of mind that any losses incurred on their behalf are covered by your fidelity bond.
Public Official Bonds
If you’re active in politics, you may already be familiar with public official bonds. Public official bonds allow public officials to show they can be trusted for their services. It protects taxpayers in the event of fraudulent services by a public official. There are different public official bonds for different job types, such as court clerk, notaries, and law enforcement.
If you’re ever involved in a lawsuit, you may need a judicial bond. Judicial bonds are court-ordered bonds to ensure you can pay costs related to legal action. There are judicial bonds for both plaintiffs and defendants.
A fiduciary bond (also known as a probate bond) is a court bond that holds the fiduciary accountable. If a fiduciary commits fraud, embezzlement, or any other dishonest acts, the fiduciary bond holds the fiduciary liable.
License and permit bonds
A license and permit bond protects consumers by guaranteeing businesses will play by the rules. Each bond is distinct to a specific industry and offers protection to both governments and consumers.
Contract/Construction Bonds (Bid and Performance Bonds)
Contract bonds guarantee that contracts are fulfilled. Traditionally, these bonds are used in the construction industry. However, it can be used for other types of service industries where a contract for work may need to be drafted.
Notary bonds protect the public from fraudulence or protects notaries from errors and omissions. A typical notary lawsuit can be up to tens of thousands of dollars. Having a notary bond in place protects both the public and the notary.
For all other bonds needed for your business, Woods Insurance Agency has you covered. This includes things such as permits, personal care assistance, lost trust notes, and unemployment.