There are many kinds of surety bonds available today due the pervasive occurrences of fraudulent activity and contract breaking. More than ever before people are faced with the legal requirement to safeguard their work or project by securing a bond. In fact, in many instances today the bond is required by law in order for a project or job to begin. Simon Insurance offers a large variety of bonds.
First, let’s look at Contract Bonds. Basically, contract bonds ensure the fulfillment of a contract as per the requirements of its terms and conditions. Because of the nature of the contract surety, contract bonds normally require an exhaustive set of conditions in order to insure the terms of the agreement. That’s why we recommended that you seek expert advice from Simon Insurance Agency before you finalize the bond or contract.
Consider the following contract bonds:
- A Bid bond - This bond ensures that the contractor who wins the bid will perform the work promised, without adding additional costs and expenses to the project. This safeguards the project owner from someone bidding too low and then lacking the sufficient funds to complete the project.
- A Performance bond – Is a bond that ensures the project will be finished and completed as per its terms and conditions of the contract. If the contractor fails to fulfill terms of the contract, the project owner is to become compensated for any losses accrued by the uncompleted work.
- A Payment Bond - A bond that will ensure that workers get paid for labor rendered, including subcontractors and material providers. This will protect the project owner if certain parts of the project are abandoned by unpaid workers.
Now let’s review license and permit bonds as a sub-category of bonds. They fall under the commercial category of bonds and guarantee that the contractor will abide by the terms of the license that filed the bond for. This is required by certain governing bodies, whether it is the state or the local county. The bond will ensure that the contractor or the principle abides by the laws of the jurisdiction when performing and completing the assigned project.
Permit bonds grant a privilege, including:
- Auto Dealer Bonds – To ensure that the dealer will adhere to the law of the land when selling vehicles.
- Mortgage Lender Bond - The license is to assure that the broker/lender will abide by the laws and regulations of that state and protect the consumers.
- Electrician’s license – Ensures that a hired electrician will not break or avoid laws pertaining to work regulations of an electrician.
- Plumber’s license - Ensures that a hired plumber will keep the regulations prescribed by the laws of the state.
There are other examples of license and permit bonds, but all these have common objective that is to make sure the principle will not violate the applicable law and thus protect the customer.
Public Official Bonds
Additionally there are Public Official bonds that are used to ensure that appointed officials uphold the laws of the jurisdiction in their assigned duties and activities. This also includes strict accountability with financial transactions and the administration of funds under their jurisdiction and care. There are of course many different kinds of Public Official bonds. Below, I’ve listed some of the more common ones …
- Treasurer’s Bonds
- Tax Collector’s Bonds
- Peace Officer’s Bonds
- Judge’s Bonds
- Hunting & Fishing license agents
Call us today for a free consultation for all types of Bonds including Court Bonds, License Bonds, Probate Bonds and Permit Bonds. Simon Insurance is based in South Florida and serves clients throughout the United States and Florida including Miami, Ft Lauderdale, West Palm Beach, Tampa, St Petersburg, Cape Coral, Orlando and Jacksonville. We encourage you to browse our website and call or email us today to find out how we can assist you. A fast and free expert consultation is just a phone call away. 561-948-4141.