Many types of insurance bonds exist to fit particular business situations.
Surety Bonds protect consumers and investors alike against business fraud, faulty work or unethical practices. A Surety Bond is a type of contract guaranteeing fair business practice and a guarantee against unlawful, unethical and unfair behavior.
License and Permit Bonds are some of the most common bonds. These bonds are often held by general contractors such as electricians plumbers and general contractors. Before working on a job or in a business, a contractor may be required by a city or state to be bonded, insuring >thatthe individuals will comply with local ordinances or code.
Contract Performance Bonds legally binds the parties to complying with the written terms and agreements of a legal contract. Most contract bonds guarantee a level of performance and are often used for large construction jobs or other big projects that are dependent on time constraints and job performance. Contract bonds can be based on bidding levels, as well as performance and payment bonds, protecting both the contractor to receive payment for services rendered and for the client that the job is done to stated specifications and written conditions.
Public Official Bonds is a guarantee that the individual elected will serveto the best of their ability within the confines of laws or ordinances of local, state or federal government. Not all public offices require bonding. Most common are for treasurers, notaries, tax collectors and judges.
Court Bonds typically deals with trustees or fiduciaries in cases involving statutes of estates, bankruptcies, foreclosures or other actions taken through litigation. These type of bonds ensure that the individuals handling the finances are honest and faithful to their duties. Examples are executors of wills, guardians of minor -- who have inherited trusts or large sums of money -- trustees or administrators of bankruptcies of foreclosures.
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