☰ ˟
Alliance circular logo listing Alliance services : Insurance, Payroll, Benefits, HR 
Home Page Email
  • Home
  • Business Insurance
    • Business Insurance Solutions
    • Workers Compensation
    • General Liability
    • Bonds
    • Cyber Liability
    • Professional Liability
    • Group Health
    • Payroll and HR
    • Trade Credit Insurance
    • Key Person
    • 401k
    • Safety Programs
  • Personal Insurance
    • Personal Insurance
    • Home/Auto/Life
    • Automobile
    • Homeowners
    • Valuables Insurance
    • Life
    • Motorcycle
    • Off-Road Vehicles Insurance
    • Renters
  • Industry Solutions
    • All Industries We Serve
    • Commercial Real Estate
    • Construction
    • ContractorsImage of right arrow
      • Window Cleaning Insurance
      • Fire Protection Insurance
      • Janitorial Services
      • Landscaping & Lawn Care
      • Alarm Installation Insurance
      • Tree Service & Arborists
    • Crane, Rigging, & Crane Operators
    • Manufacturing
    • Oil & Gas
    • Restaurant & Bars
    • Hotel Insurance
    • Gym and Fitness Center Insurance
    • Medical Malpractice Insurance
    • Trucking
  • Our Team
    • About Us
    • Location(s)
    • Associate Agencies
    • Testimonials
  • Blog
  • Contact Us
Business
Insurance
Home/Auto
/Life
Health &
Benefits
Payroll
& HR

Bonds


Bonds Information

Bonds

 

Ready to Get a Quote or Talk to an Expert?  

What is a Bond?

contractor jumping for joy

By definition, a bond is a thing used to tie something or to fasten things together or an agreement with legal force, in particular.

When applied to the insurance surety world, a bond binds one entity or person to another entity or person with financial consequences as well as a third party, the insurance company.  In this case, the insurance company is counting on the idea that the promises and responsibilities of the contract holder are successfully fulfilled by the person or entity performs the work. Should the entity performing the work fail to complete the project as agreed upon, the surety company will source another group to ensure that the contractual obligations are fulfilled. Subsequently, any monies paid out by the bonding company in order to satisfy the terms of the contract will be collected from the initial contractor that did not satisfy the terms of the agreement.  

In the insurance world, there are over 300 different types of bonds. However, the two most common categories are commercial surety and contract/construction surety bonds.

  • Commercial Surety Bond – This category includes a vast variety of bond types. The majority of them are in place to provide security that the person or entity performs their duties in a legal and ethical manner without fraud, deception or dishonesty. At a high level, these bonds ensure that you are who you say and are capable of doing what you say you will. Some examples of commercial surety bonds are license and permit bonds, auto dealer bonds, employee dishonesty bonds, appeal bonds, trustee bonds, and notary bonds.
  • Contract Surety Bond – This is a much smaller category as it is typically associated with the construction industry. Contract surety bonds guarantee that the service provider, contractor, supplier or developer will fulfill the contract per the plans and specifications of the agreement as well as pay all outstanding liabilities associated with that contract (labor, materials, and subcontractors). The main types of surety bonds for these are bid bonds, performance bonds, payment bonds, supply bonds, site improvement bonds, and subdivision bonds.

Learn more about bonds in our blog

Some bonds we handle include, but are not limited to, the following:

  • Contract performance bonds
  • Bid bonds
  • Maintenance bonds
  • Payment bonds
  • Supply bonds
  • License and permit bonds
  • Miscellaneous bonds
  • Subdivision bonds
  • Oil & Gas Single Lease bond
  • Plug & Abandonment bond
  • Oil & Gas Activity Blanket bond

Get started today by filling out the short form below!

Contact us today, and we can answer any questions you have about scaling your business with commercial bonding opportunities.

Get a Quote!

Just need a little info to get started...

  • Carrier
  • auto-owners insurance logo
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
Connect With Us:
Social Social Social Social
Agency
Alliance Insurance Group
7910 Ralston Rd., Ste 7
Arvada, CO 80002

Phone: (303) 279-9700
Business Insurance
Home/Auto/Life
Health & Benefits
Payroll & HR
Home
About Us
Privacy Policy
Contact Us
Powered by Insurance Website Builder
Alliance Insurance Group Rated 4.8 / 5 based on 5 reviews. | Review Us