Bond & License Services for Businesses
Owning a business means taking risks. At King Insurance, we offer a variety of bond and license services to ensure that your business is protected. While there are many Bonds from which to choose, they can be issued for an extensively wide range of circumstances, and choosing the right bond to suit your needs can be a difficult task.
The professional and knowledgeable bond specialists at King Insurance will work with you to develop a business solution to help meet all of your bonding goals. In addition to providing quality surety products, we also provide various licensing and permit services to ensure that your business runs to the letter of the law.
Our business solution services include:
- Performance Bonds
- Contractor’s Bonds
- ERISA Bonds
- Fiduciary Bonds
- Sub-Division Bonds
- Court Bonds
- Conservator Bonds
- Surety Bonds
- Fidelity Bonds
- Public Officials
- Liquor Licenses
If you need a bond or license, contact a bond specialist at King Insurance today who can help you find the surety products that keep your business covered.
A performance bond guarantees a project will be completed in a satisfactory manner. It’s generally issued by an insurance company such as King Insurance or a bank and requires collateral property or investments to back up the surety agency’s requirements. Performance bonds protect the owner against potential losses if the project isn’t delivered as stated in the contract. Both public, or governmental, and private sector projects require performance bonds.
Contractor bonds are required for anyone interested in becoming a licensed construction contractor. The cost and requirements vary depending on the city, county and state where the construction occurs. A contractor bond binds the principal (contractor) with the obligee (entity requiring the bond) and the surety. Under this type of bond, the contractor agrees to complete the work under specific regulations. If this doesn’t happen, the obligee can file a claim against the bond to recover incurred damages.
Employee Retirement Income Security Act (ERISA) bonds are used to protect employee benefit plans in the event of fraud, dishonesty, or other criminal behavior by a fiduciary. In this case, a fiduciary is an investment adviser or manager and/or trustee. Generally, employee benefit plans are required to be covered by an ERISA bond. While this bond is thought of as a type of insurance, it differs from the latter in that the bond only covers up to a predetermined payout amount.
Also called a probate bond, a fiduciary bond assures that a fiduciary will carry out their duties in good faith and honestly. These bonds are used when one party takes control of another’s assets or interests, generally when the latter is no longer able to handle their finances. Claims against a fiduciary bond occur when a fiduciary acts unethically, commits fraud, or embezzles the financial assets they’re responsible for.
A fidelity bond protects a business against employees’ dishonest or fraudulent actions, such as theft and forgery. It’s a type of insurance often used as part of a business’ risk management strategy. Fidelity bonds may be required depending on the type of business activity or industry and can also safeguard a business’ clients and customers against employee dishonesty. ERISA bonds are a popular type of fidelity bond.
A construction principal uses a subdivision bond to assure a city, county, or state that a subdivision project is appropriately financed and will be completed to meet mandatory public improvements. A local authority may require any builder, developer, or landowner to have a subdivision bond when filing a lot map or receiving a building permit. Generally, subdivision bonds apply to new construction of buildings, curbs, drainage systems, gutters, sewers, sidewalks, and streets.
Court bonds, or judicial bonds, protect an individual from potential losses resulting from a court decision during civil proceedings. Court bonds are split into defendant and plaintiff bonds. Defendant bonds prevent a plaintiff from pursuing satisfaction of a claim while the defendant may regain control over contested property or postpone a legal order affecting property rights. Plaintiff bonds guarantee the defendant’s protection if the plaintiff loses in a civil proceeding. The plaintiff is then responsible for damages suffered by the defendant.
Also called a guardianship bond, a conservator bond is used when a conservator is appointed to handle the financial affairs of a minor or incapacitated adult, called the conservatee. Usually, this type of bond is required when the sole purpose of certain assets is the care and well-being of the conservatee. The bond aims to prevent mismanagement of the conservatee’s assets and is mandatory in some states.
Surety bonds are mostly used in construction projects and guarantee that a party will perform a contractually agreed-upon service. Three parties are involved: principal, obligee, and surety. The principal is whichever party needs the bond, such as a contractor, while the obligee is the party requiring the bond. The surety is an insurance company, such as King Insurance, that guarantees that the principal has the ability to fulfill their part of the contract. The obligee is reimbursed by the surety if the principal fails to perform the agreed-upon service.
Public official bonds let many types of public officials, such as city managers, commissioners, and notaries, show the general public that their services are trustworthy. Many times, public officials are required by law to be bonded because they handle money and sensitive private information. If unethical service occurs, an affected citizen can file a claim against the bond to recover lost monies.
A liquor license bond pledges that the licensee, such as a liquor store, restaurant, or winery, will follow all laws, regulations, and statutes dictated by their liquor license, including payment of all alcohol taxes. The bond must be maintained to continue business operations. Types of liquor license bonds vary by state, and King Insurance can help you determine which are applicable to your business and state.