Then in few short minutes, your bond will arrive directly into your inbox, and just like that, your employees are bonded.
It's a fast and easy way to get your employees bonded. Bonds are issued by A.M. Best Rated "A" insurance carriers and through Dopazo Insurance, a family run independent insurance agency in South Florida with over 20 years of experience with helping small businesses just like yours with their bonding and insurance needs. Click on the video to learn me.
Bid bonds are used by project owners as a method of prequalifying contractors that submit bid proposals. They often have to have the financial credentials necessary to accept, perform and complete the job.
If a bid is selected and the contractor declines the job or retracts the bid, the owner can make a claim on the bond to collect the difference of the original bid and the next highest bid.
Per industry standards, they are free with the expectation that if the contractor wins the job, they will get their Performance and Payment bond through the same surety that wrote their bid bond.
A contract bond is a type of surety bond that guarantees contracts are fulfilled. These are mostly found in the construction industry to ensure projects are completed according to the contract.
If the contracted party fails to fulfill its duties according to the bond’s terms, the project developer can make a claim on the bond to recover financial losses. By Federal Law, bonds are almost always required before work can begin on public projects. Private developers can require them as well.
The Performance part of the bond guarantees that contractors complete construction projects according to the contractual terms. If a contractor fails to do so, the owner can make a claim on the bond to access funds that can be used to pay another contractor to finish the job. The Payment part of the bond guarantees payment for services in the case contractors go bankrupt when working on projects. The bond amount can be used to reimburse those who worked on a project if the lead contractor is unable to pay them for their work.
Costs can vary widely ranging from 1% – 4% of the bond amount. Generally, bonds under one million fall right at 3%, but each contractor is underwritten to determine the final cost of the bond. Credit, financials and experience are the main driving factors in bondability and cost.
A guarantee of performance or an agreement where one party, the surety, obligates itself to a second party, the obligee, to answer for the default of a third party, the principal.
A bond that reimburses an employer as the named insured for loss or damage sustained as a result of the dishonest acts of a covered employee up to the limit or penalty amount of the bond.
To compensate for damage, loss or injury suffered or for an actual loss sustained.
The party for whom the bond runs or the party the bond protects against loss. The party in a surety bond contract to whom the right of performance or the obligation is owed.
The party having the primary responsibility of performing the obligation. In suretyship, it is the party whose action, honesty or responsibility is guaranteed.
A term used in bonding that refers to an endorsement to a bond that modifies policy clauses and provisions, usually by adding or excluding coverage.
The guarantee given for fulfillment of an obligation, the person or organization that guarantees fulfillment of an obligation or the underwriter that guarantees something in the coverage of a bond.
The period of time for which a bond is written.
An employee or an authorized representative of a surety company who accepts or rejects risks on behalf of that company and determines the coverages, limits, and terms to apply.