Surety Bonds surety bonds

Honest, Responsible Business

Surety bonds are different than insurance. They are designed to guarantee a principal will act with honesty, integrity and financial responsibility and comply with a law or contract. Surety bonds offered include:

  • Court Bonds: These bonds guarantee the holder is protected from losses stemming from a court decision.
  • Fidelity Bonds: These bonds protect against employee theft, whether from you or one of your competitors.
  • Bid & Performance: These bonds guarantee that a contractor will stick to the terms of a construction contract.

Information and/or definitions for generic insurance products are provided by Nationwide Insurance Company and do not represent a particular offering of coverage.

Types of surety bonds offered include:

  • Court Bonds: If you are involved in a court case as a plaintiff, defendant, or fiduciary, you may need a court bond. These are often required in the court proceedings to protect from possible loss resulting from the court cases outcome.
  • Fidelity Bonds: Dishonest employees can be an unfortunate reality in the business world. Fidelity bond coverage protects against employee theft.
  • Bid & Performance Bonds: Bid and performance bonds, sometimes called Contract Bonds, guarantee that a contractor will abide by the specs of a construction contract. They will perform the work. They will pay the subcontractors, vendors and labor.

How are surety bonds different than an insurance policy?

Surety bonds are different than an insurance policy because the beneficiary is a third party, with the Surety almost always being the insurance company. As long as the Principal performs, the Surety does not have to pay.

William Cochran Bray

William Cochran Bray

Senior Vice President, Risk and Insurance

Location: Spirit Lake Insurance Office

Phone: (712) 336-5090

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