Bonds Quote Forms
Looking for coverage? Click any of the following links to submit a quote for quick, accurate and affordable rates.
Bonds offer financial protection to your clients, and they may be required before your business can begin projects or secure permits. Additionally, bonds can offer coverage for your employees’ dishonest acts.
The experienced agents at K2 Insurance Brokers and Risk Management can help you obtain the bonds that best suit your business’s needs. Contact us today for more information.
Surety and Fidelity Bonds
Surety bonds and fidelity bonds are two common types of bonds available to businesses.
Surety bonds guarantee that your operations will follow the terms of a contract or meet specific laws or regulations. Three parties form a surety bond:
- The principal (e.g., your business) purchase the surety bond.
- The obligee (e.g., a governmental entity or a private client) requires the principal to secure a surety bond.
- The surety (e.g., an insurance company) maintains and underwrites the bond.
How Do Surety Bonds Work?
If the principal doesn’t follow a surety bond’s terms, the obligee can file a claim. After the surety investigates the issue, and if the principal doesn’t resolve it, the surety may compensate the obligee up to the bond’s amount. The principal is then responsible for reimbursing the surety for that cost.
While surety bonds aren’t insurance, they can protect clients’ financial interests and provide peace of mind. Appropriate bond coverage can help your business attract customers as some are more comfortable working with bonded companies.
Types of Surety Bonds
They are many types of surety bonds. Bid bonds, performance bonds and maintenance bonds are contract surety bonds; license and permit bonds are commercial surety bonds.
- Bid bonds provide assurances that a business will begin a project if they win a contract after a bid.
- Performance bonds guarantee a business will complete a project in line with the contract’s provisions.
- Maintenance bonds or warranty bonds provide assurances that a business will remedy a defect in workmanship or materials of a completed project or that the project owner will be compensated for the flaw. They are typically effective for a specified term (e.g., one year).
- Licenses and permit bonds provide assurances that a business will follow applicable laws and regulations. A governmental entity may mandate them before issuing a license or permit.
Other surety bonds may be available. Your K2 Insurance Brokers and Risk Management agent can provide more information on available options.
A fidelity bond is a type of insurance that can provide financial protection against employees’ dishonest acts, such as the following:
Coverage for other wrongful acts and for the dishonest acts of volunteers or contract workers may also be available.
How Much Are Bonds?
The costs of securing bonds depend on several factors such as the type of bond you are seeking, your industry and your business’s location. The amount of bond coverage you are securing can also affect its price. Contact our agents for a quote.
How to Buy Bonds
The team at K2 Insurance Brokers and Risk Management can help you get the bonds you need. Contact us today to get started.