Your Insurance Questions Answered

It guarantees that your business will complete a project according to contractual terms; if not, the surety compensates the obligee.

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.

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

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

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.

A bid bond assures the project owner that you will honor your bid and provide performance and payment bonds if awarded the contract.

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

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

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

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

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

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

Also known as errors and omissions (E&O) insurance, it protects businesses against claims of negligence, mistakes, or failure to deliver services as promised.

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.

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

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

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.

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.

It covers claims arising from incidents that occurred before the policy start date, subject to policy terms.