These bonds are designed to protect against dishonesty and typically it’s dishonesty of employees. They cover losses arising from employee dishonesty and indemnify (compensate for loss) the principal for losses caused by the dishonest actions of its employees.
– Employee Dishonesty
Public Official Bonds
These bonds are required by statues and protect against dishonesty and lack of faithful performance by a public official.
This is a bond required by a court to secure a party’s costs of appeal, attachment, and injunction. It promises payment that would be required in a court case.
Protects against dishonesty by administrators, trustees, guardians, executors, and other fiduciaries. Fiduciary bonds, also referred to as probate bonds, are required by statutes, courts, or legal documents to protect those who the fiduciary is handling the affairs for. Examples of a fiduciary would be handling the administration of an Estate or the management of the affairs of a Trust.
License and Permit Bonds
License and Permit Bonds are required to obtain a license or permit to comply with laws in many cities, counties, or states. There are numerous reasons for license and permit bonds, including providing consumer protection (such as a condition to granting licenses related to selling things such as motor vehicles or contracting services) and the payment of certain taxes and fees.
– Auto Dealer Bond
– Freight Broker Bond
– Notary Bond
Bonds that generally provide financial security and construction assurance on construction projects by assuring the project owner that the contractor will perform the work and make the payments to any subcontractors, laborers, and material suppliers.
Bid Bonds are normally the first step in bonded projects. They are issued first and then if the contractor is award the job it is followed by Performance & Payment Bonds (typically issued together).