Your Insurance Questions Answered

A fidelity bond protects your business against losses caused by fraudulent acts of employees, such as theft or embezzlement.

Apply through a surety company or agent, providing financial statements, credit history, and details about your business operations.

Bond premiums are typically paid annually for the duration of the bond requirement.

Common bonds include performance bonds, payment bonds, license and permit bonds, fidelity bonds, and bid bonds.

The surety investigates the claim; if valid, they pay the obligee and seek reimbursement from your business for the amount paid.

A maintenance bond guarantees that workmanship and materials will meet contract standards for a specified period after project completion.

It may be more challenging and expensive, but some sureties offer bonds to businesses with less-than-perfect credit.

Costs are influenced by the bond amount, type, your business's financial strength, credit score, and industry experience.

Fidelity bonds specifically cover losses from employee dishonesty; other bonds may not provide this coverage.

Some bonds may offer a partial refund upon cancellation, but terms vary by surety and bond type.

It can range from a few days to a few weeks, depending on the bond type and underwriting requirements.

Yes, being bonded can enhance your reputation, demonstrating financial stability and reliability to clients.

It's a bond required by government agencies as a condition for obtaining a license or permit, ensuring compliance with laws and regulations.

For contract bonds like performance bonds, yes. Each project typically requires its own bond.

Bond premiums are generally considered a business expense and may be tax-deductible. Consult a tax professional for advice.

Professionals who provide services or advice, such as consultants, lawyers, accountants, architects, and engineers, should consider this coverage.

General liability covers bodily injury and property damage, while professional liability covers financial losses due to professional errors or omissions.

It doesn't cover intentional wrongdoing, fraudulent acts, bodily injury, property damage, or general liability claims.

Exclusions are specific conditions or circumstances not covered by the policy, outlined in the policy terms.

Coverage is provided only if the claim is made during the active policy period, regardless of when the incident occurred.

It covers legal defense costs, settlements, and judgments resulting from claims of professional negligence or errors in your services.

Yes, policies can be tailored with endorsements to meet specific industry risks and business needs.

It's the date from which your coverage applies. Claims arising from incidents after this date are covered if the policy is active when the claim is made.

Tail coverage extends your professional liability insurance after the policy ends, covering claims made for incidents that occurred during the policy period.