Surety Bonds and Fidelity Bonds in Miami Florida

Bonds can provide essential coverage for your business and help you attract clients. Specific bonds may also be required to obtain certain licenses or permits.

Surety bonds and fidelity bonds are two common types of bonds that businesses consider. Surety bonds provide guarantees that you will fulfill your contracts and/or meet applicable regulations. Fidelity bonds can provide financial protection against employees’ dishonest acts.

The professionals at Max Value Insurance Group in Miami, Florida, can help your operations secure the bonds that fit your needs. Contact us today for more information.

What Is a Surety Bond?

A surety bond is a contract among three parties: the principal, the obligee and the surety. The principal is the business that purchases the surety bond; the obligee is the governmental or private party that requires the principal to obtain the bond; and the surety (e.g., an insurance company) is the entity that underwrites the bond.

If a business (i.e., the principal) fails to meet its obligations, a client (i.e., the obligee) may file a claim against the bond. The surety will then investigate the claim, and if the business does not rectify the issue, the surety may provide payment to the client up to the bond’s amount. The surety would then seek reimbursement for that expense from the business.

Types of Surety Bonds

Commercial bonds and contract bonds are two common types of surety bonds.

Commercial Bonds

A commercial bond provides assurances that businesses will comply with specific requirements. For example, license and permit bonds, a commercial bond, guarantee that your company will comply with applicable laws and regulations. A governmental entity may require them before issuing a license or permit.

Contract Bonds

Contract bonds provide guarantees that a contract’s terms will be fulfilled. They are often used in the construction industry. The following are types of contract bonds:

·        Bid bonds guarantee businesses will start a job if they win a contract.

·        Payment bonds guarantee businesses will pay subcontractors and suppliers for labor and materials.

·        Performance bonds guarantee businesses will finish a project in accordance with the contract.

·        Maintenance bonds guarantee defects in materials or workmanship will be remedied or the owner will be compensated if the problems arise within a set time frame (e.g., one year) after a project is finished.

Other types of contact bonds may be available. Contact your agent for details.

Fidelity Bonds

Fidelity bonds may also be known as employee dishonesty bonds. They are a type of business insurance that may provide financial protection for your business and clients against employees’ dishonest acts (e.g., theft, fraud, forgery and embezzlement). Coverage for the dishonest acts of volunteers may also be available.

Secure the Bonds You Need

The Max Value Insurance Group has been in business for over 20 years and can help you get the bonds your business needs. Contact us today to get started.