Surety Bond & Fidelity Bond

We understand contractors and the need to get bonds QUICKLY

When taking on a new project, you likely spend some time assessing the risks that come with the task in front of you.

We also understand that working in the construction industry brings with it a lot of unique risks

That raises the question: what exactly is a surety bond? We understand that there can be a bit of confusion out there when it comes to bonds. Contractors often deal with many different types of bonds. They are a requirement necessary to cover the risks involved in the industry.

First it might be helpful to understand what a bond is NOT

A bond is NOT a form of insurance. A bond is a financial guarantee or a form of credit
A bond is a loan made to a company
A bond is security that can be bought and sold
A bond is a form of payment in many cases, as it can guarantee payment

A surety bond or contract bond is a guaranty from a Surety to a project's owner (Obligee) that a general contractor (Principle) adheres to what the contract stipulates. Simply put, it means that it is a contract between the project owner and the contractor. A Surety bond assures the project owner that the contract will be completed and the work will be completed as outlined or else the project owner is financially compensated.

Contractors often deal with many different types of bonds

Bid bonds which guaranty that a contractor will enter into a contract if they win the bid
Performance bonds which guaranty that a contractor will perform the work as outline in the contract
Payment bonds which guaranty that a contractor will pay for services, particularly making sure that all of the subcontractors are paid as well as all of the materials
Maintenance bonds which guaranty that a contractor will provide maintenance, repair and upkeep for a specified period of time

If the parties agree to require bonding, additional forms, such as the performance bond contract AIA Document 311 provide common terms.

How much will my Surety bond cost?

The answer is that it depends. Rates normally run between 1% and 5% of the penalty sum based on your credit score. Contact your InsuranceHub agent for the latest rates available to you.

What is a Fidelity Bond?

Sometimes before you receive a contract the owner wants to make sure that your employees are honest workers. The fidelity bond guarantee that the bonded employee(s) can be trusted and will not steal from them. These types of bonds are often required when employees are trusted to handle cash or other valuable assets.

Finally, why choose InsuranceHub to help you with your bonds?

Here is the thing about bonds. If you are a contractor, subcontractor or tradesman, bonds are a way to obtain financial security when taking on a project. When it comes time to be awarded a contract, you need to be able to get the bond to be able to close the deal right way.
That means contractors need them fast and they need everything to go nice and easy. That is where we come in. InsuranceHub has been helping contractors with their insurance and bonding since 1985. Our job is to make your life easier by providing you with counseling, insurance, and bonds you need in a timely manner.