McCormick Insurance Solutions is your one-stop-shop for all types of bonds. If you need the bond right away, we can give it to you in person. Many bonding companies only accept orders by mail, and Bid Bonds, Performance Bonds, and License Bonds are in high demand these days.
Bonding is a promise that duty will be fulfilled correctly. That obligation may derive from a contractual connection or a statute or ordinance that governs the principal’s behavior.
Is Bonding Like Insurance?
If a covered insurance claim or incident happens, insurance provides coverage up to the policy limits. A surety bond is an agreement by one firm to be accountable for the debts, defaults, or other types of failures of another company.
A surety bond is a contract/agreement between three different business parties.
- The principal is the business that purchases the bond
- The oblige is the customer/business who has asked for the bond.
- The surety is the company used to underwrite the bond.
Common Surety Products
- Bonds for contracts; A performance bond, also known as a bid bond, supply bond, maintenance bond, or subdivision bond, is a financial guarantee for a certain contract. A bond is granted by an insurance provider to ensure that a contractor completes a job satisfactorily. A contractor, for example, may offer a bond to a customer for whom a building is being built. If the contractor fails to build the building according to the contract’s specifications, the client is entitled to compensation for any monetary losses.
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- Bonds based on performance; Ensure that the project is completed according to the contract’s specifications.
- Supply bonds ensure that suppliers will deliver the supplies and materials specified in a contract.
- Subdivision bonds; Ensures that work mandated by the government or municipality is executed correctly and on time.
- Bid bonds are a type of bid security; Payments to subcontractors and suppliers are guaranteed.
- Maintenance bonds; Guarantees that work on a project will be done for a certain amount of time after it is completed.
- Commercial bonds; Provide a guarantee based on the bond form’s terms, such as a notary bond, which protects the general public when a company executes notarial actions.
- Bonds for licenses and permits; These are the bonds that a government agency needs in order for you to obtain a business license. These can take the form of local, state, or federal government.
- Although not a surety bond, fidelity bonds are a common bond purchased by businesses to safeguard against theft.
What Industries General Use Bonding?
Construction, government agencies, janitorial services bonds, and temporary employment organizations are the most prevalent industries that require contractors to be bonded. Government entities and the country’s huge construction industry are the two main users of surety bonds. In some businesses, such as tax preparation and notary services, a bond is required as part of the licensing procedure.
How To Obtain The Bond I Need?
The process of obtaining a surety bond is very similar to obtaining a bank loan. Call us, and we can walk you through the process, which will save you time and money! We can Then:
- Determine the kind of bond you need.
- Help you gather the required information.
- Make application.
- Place bond.
- File your bond as needed.
McCormick Insurance Solutions. San Diego Insurance Broker Auto, Home, Life and Commercial Insurance and Surety Bonds. Insurance license number 0D95593. 619-276-0492 1437 Morena Bl Suite 201, San Diego CA, 92110 USA