Bonds are not insurance policies – they’re guarantees. It is not uncommon for business and contractors to have certain projects bonded to ensure they are completed, no matter what complications may arise.
At MarMar Insurance Agency we have different type of surety bonds: Commercial & Contract. Each category is underwritten differently and as such, requires different questions of you, the applicant.
Commercial Bonds
Commercial surety bonds come in a wide variety of specialties. These bonds are most frequently required for business owners who must be bonded in order to legally operate under their state’s guidelines. Most business owners will require at least one bond in their possession to obtain a business license. Among the most common commercial bonds are:
ARC Bond
A bond required by the Airlines Report Commission.
Money Transmitter Bond
Many state governments require money transmitters to obtain a bond to guarantee they will operate in accordance with the terms their license.
License & Permit Bond
They guarantee the principal will abide by the terms of the license they file the bond for. Some of the most popular License and Permit bonds are: Auto Dealer Bonds, Contractor License Bonds, Mortgage Lender Bond, Mortgage Broker bonds, etc.
Contract Bonds
Bid Bond
A guarantee that the bonding company will provide a performance bond if the contractor is awarded the job.
Performance Bond
A contract bond to guarantee the completion of a project per the terms of the contract.