Bonds

Surety Bonds

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Although commercial contractor’s insurance addresses most aspects of business liability,many clients require contract-specific guarantees which are best addressed not by insurance policies, but by bonds. Surety bonds include most types of bonds commonly used in the construction industry, including bid bonds, payment and performance bonds, contract bonds, subcontractor bonds, maintenance bonds, and employee bonds. Bid bonds are required by some clients as assurance that a bid, once made, will be honored.
Payment and performance bonds ensure that a contractor will fulfill the terms of a contract
in accordance with the guidelines of that contract. Contract bonds, also known as labor
and material payment bonds, ensure that employees and/or subcontractors will be paid
for materials and labor costs regardless of the financial or contractual situation of the
contractor. Subcontractor bonds resemble payment and performance bonds, guaranteeing
that the subcontractor performs in accordance with contractual agreements. Maintenance
bonds act almost like warrantees on the completed project or property, and render the
contractor responsible for any maintenance or structural issues after the property is
complete. Employee bonds regulate the conduct of employees and prevent employee theft
 and dishonesty. Many times, the same companies that issue commercial contractor’s insurance policies act
as the surety for construction bonds of all varieties. Contractors will pay a bond premium
(usually one to three percent of the total bond value, although bond premiums may be as
high as five to twenty percent for high-risk ventures). Bonds are an excellent way to provide
clients with the necessary financial and contractual guarantees without having to segregate
cash in an escrow account. Most bonds require no collateral, and turnaround time for bond
inssurance is usually only a few days after the bond premium is received[/wpcol_3quarter]

Quote Intake Sheet
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  2. (valid email required)
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Business Underwriting Info
  1. Currently Insured?
  2. Claims in last 5 years
  3. Number of Active Employees:
  4. Do you subcontract work?
Liability Coverages
  1. Limit of Liability
Property Coverage
  1. Deductable
  2. Preferred Contact Method