Bonds Understanding bonds is a vital knowledge. Basically, a Surety Bond is a written promise by an insurance company saying that your assets are protected. This also serves as a backup to the promises made by someone else. Premier Choice Insurance will work with you to find outstanding products supported by value-added services to commercial banks, savings and loans, insurance companies, finance and loan companies, and credit unions. Bond insurance is also known as financial guarantee policy. As the term suggests, it guarantees the payment of principal and interest on a bond, or in certain cases, on other security, in the event of a non-payment by the issuer of the said bond. Premier Choice Insurance is more than willing to provide answers to your concerns and needs. Our company has the right reputation and experience when it comes to helping customers with their bond insurance problems. To see the importance of bond policy and to determine the kind of coverage or policy you need, get to know the different types of bonds, as discussed below: Construction Bonds Construction bond and contract bond are two terms used to refer the same thing, which is why they are used interchangeably. Both are a type of surety bond which are commonly used in construction industries; thus, the name. With this, the project developer can claim from the bond for any financial loss in case a contracted party fails to perform its duties. This is used to ensure that contracts are fulfilled by the party. Commercial Bonds This type is also commonly known as a non-contract surety bond. This does not have associated contracting guarantee. Most business owners used this kind of bond to protect consumers from possible financial and physical harm. The common kinds of this bond are as follows: license and permit, probate, receiver or trustee, public official, court and miscellaneous bonds. License and Permit Bonds This is a specific type of commercial bond. This is required by the government to business owners who are in certain industries. They need to purchase this type of bond before they can legally secure a license for their business. This is the government’s way of protecting the consumers. It serves as a guarantee that these businesses abide to local, state and federal laws.
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