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Bonds

At Rux Carter Insurance one our many value added services includes providing our customers with a wide range of Bond Insurance products. Bonds are often a misunderstood insurance product and like many other lines of insurance there are many different type of Bond Insurance.

There are 2 main types of Bonds: Surety and Fidelity

Surety Bonds (defined):

A surety bond is a contract guaranteeing the performance of a specific obligation. Simply put, it is a three-party agreement under which one party, the surety company, answers to a second party, the owner, creditor or “obligee,” for a third party’s debts, default or nonperformance. Contractors are often required to purchase surety bonds if they are working on public projects. The surety company becomes responsible for carrying out the work or paying for the loss up to the bond “penalty” if the contractor fails to perform.

Surety Bonds

Fidelity Bond (defined):

Fidelity Bonds are very similar to employee dishonesty insurance. Technically, however, insurance is a contract between two parties while a bond involves three parties. Surety bonds share this characteristic with fidelity bonds.

Often when people ask if someone is” insured and bonded” they are referring to whether or not a company or person has Employee Dishonesty coverage in place to cover their business as a result of a dishonest act of one of their employee’s. Companies and/or business that have employees that work within customers homes and/or businesses are often required to have this type of coverage to cover them in case one of their employees commits theft against the homeowner or business where the are working (janitorial services, painting contractors, etc.).

Fidelity Bonds:

• Name Schedule Bonds
• Position Schedule Bonds
• Commercial Blanket Bonds
• Blanket Position Bonds

Contact us today and we will be happy to review any of your bonding needs.

(Some information used with permission from the Insurance Information Institute, www.iii.org)