A Surety Bond is a contract in which one party (the surety) guarantees the performance of certain obligations by a second party (the principal) to a third party (the obligee.) For example, construction contractors are often required to provide a surety bond to guarantee they will complete a project in accordance with all of the specifications of a construction contract.
Grandbay Financial Services specializes in serving the needs of businesses of various sizes.
Contract bonds ensure that a contractor will adhere to the specifications of a construction contract. It guarantees the project owner that work will be performed in a timely manner according to the agreed upon requirements and that all subcontractors, suppliers and workers will be paid.
Grandbay Financial Services can assist your business in obtaining several different types of contract bonds, including:
A surety bond is a form of credit: That is, the surety company is using its own funds to guarantee that your business will complete a project as agreed. For this reason, most surety companies require extensive documentation before issuing a surety bond. This typically includes (but is not limited to):
The surety may also ask for additional financial records, personal and business references and a business continuation plan that details how the business will be run if the owner dies or becomes ill.
Commercial surety bonds guarantee some aspect of your profession or occupation, and are usually required by law. For example, a licensed general contractor may be required to have a commercial license bond to guarantee that he complies with local building codes.
Commercial bonds are a feature of many different occupations and industries. Some types of commercial bonds offered by Grandbay Financial Services are listed below.
Court Surety Bonds are sometimes required during court proceedings to protect parties against financial loss. Also known as Judicial Bonds, they offer protection in various circumstances involving the judicial system. Here are some examples of the kinds of Court Bonds you might need:
Fidelity bonds protect your business assets against losses associated with employee theft. Many businesses whose employees handle money or valuable assets such as jewelry choose to be protected by a Fidelity Bond.
There are three types of Fidelity Bonds: Business Service Bonds, Standard Employee Dishonesty Bonds and ERISA Bonds.
Business Services Bonds
A Business Services bond protects your customers by guaranteeing losses resulting from dishonest acts by employees while on their premises. So, if one of your employees steals a laptop, money, or other personal belongings from a customer, the customer will be reimbursed. Business services bonds are a good choice for house cleaning businesses, janitorial services, dog walkers and pet sitters. Not only do they protect the customer, they also add to your credibility and enhance your reputation in the community.
A Standard Employee dishonesty bond protects your business against dishonest or fraudulent acts by your employees, including theft of money or other property. Grandbay Financial Services often recommends this type of bond for professional service providers such as doctors, dentists and CPAs.
ERISA bonds are required by the Employee Retirement Security Act of 1974. They protect pension participants and beneficiaries from a fiduciary’s fraudulent or dishonest acts by requiring a bond equal to at least 10 percent of the plan’s assets.
To learn more about the bonding process and find out what type of bonds your company might need, contact Grandbay Financial Services at 516-292-3780 or request a consultation online. An agent will get back to you within one business day.