Surety & Fidelity Bonds
Surety bond insurance is a contract between those who are performing certain tasks, the principal, an insurance company, the surety, and the person or organization requiring the bond, the obligee. Essentially, surety bond insurance is a written promise that an insurance company will protect the assets of the obligee and back up the promises made by the principal. They’re guarantees that specific tasks or obligations will be fulfilled. If not, the obligee can recover losses by filing a claim. Assuming the claim is valid, they’ll be paid reparations as high as the bond amount. With surety bond insurance, obligees get a legal contract that helps protect against losses caused by a certain party not meeting the agreed-upon contractual obligations.
Our team at Southern Colorado Insurance Center will work with you to find outstanding products supported by value-added services to commercial banks, savings, and loans, insurance companies, finance and loan companies, and credit unions.
Fidelity bonds are a form of business insurance and are very similar to surety bond insurance in the sense that they grant an employer protection against losses caused by an employee’s dishonest or fraudulent actions. The protection offered by fidelity bond insurance extends to both criminal actions an employee takes against the company itself and the company’s clientele. Fidelity bond insurance in Colorado protects against both monetary and physical losses and is considered a crucial component of an effective risk management strategy. It also protects a company from being subject to certain legal or financial penalties. In the event that an employee, or employees, commits a wrongful act. This makes fidelity bond insurance especially important for large companies with thousands of employees that put them at an increased risk of being subject to such penalties as a result of their employee’s wrongdoing.
There are a lot of different types of bonds on the market. Some of the more common types for business owners include:
Construction Bonds - Bid, Performance and Payment Bonds and Supply bonds for contractors with program capacity needs from “First Bond” to $25 million. Construction bonds are a type of surety bond that is meant to protect against disruptions or financial loss that may be related to a contractor's failure to complete a project or failure to meet contract specifications.
Commercial Bonds - Are agreements that are meant to protect businesses and are commonly known as business bonds or commercial surety bonds.
Financial Institution Bonds and D&O Coverage - Commercial Banks and Savings Institutions, etc.
Whether it’s with surety bond insurance, fidelity bond insurance, or some other form of bond, Southern Colorado Insurance Center strives to help you understand all your options, provide you with cost-effective insurance plans, and ensure you’re business is covered. We know that the various types of bonds and what they protect against can get very confusing, so please contact us with any questions you may have on Colorado Bond insurance. We’re standing by to assist you just as we have for thousands of others in the southern Colorado. Contact us today!