5 Types of Bond Insurance in Redmond

5 Types of Bond Insurance in Redmond

Are you a business considering your options for bond insurance in Redmond? American Insure-All® is here to help you sort out what types of bond insurance are best for your operations. 

There is a vast selection of types of bond insurance to choose from, but they can be broken down into five main types that small businesses might need before opening doors. These bonds do not protect the companies, generally: instead, they protect the customers. Business protection can come from professional liability insurance, among other types of coverage. If a customer feels wronged by the business, they can make a claim against a company’s bond.

Here are the five types of bonds you should be looking out for:

License and Permit Bonds

A license and permit bond is a type of bond that small businesses may require before they can receive their business license. Common types can include contractor license bonds, notary bonds, motor vehicle dealer bonds, private investigator bonds, collection agency bonds, and mortgage lending bonds. License and permit bonds are required by law, and if your business license requires a bond, the licensing agency is going to be transparent in letting you know.

Fidelity Bonds

When you want to protect your business, the obvious option is to purchase insurance. But, the struggle comes when you have to choose what kind of insurance? How do you protect against employees stealing from you, or other types of theft, embezzlement, or even fraud? That’s where fidelity bonds come in, as they are designed to protect your company from financial losses.

There are a wide variety of fidelity bonds, including commercial crime fidelity bonds, which are also called “employee dishonesty bonds,” which can protect businesses from bookkeepers or employees that are directly handling your business’s money. This coverage takes care of you if an employee should steal directly from your coffers. Unlike license and permit bonds, fidelity bonds are generally voluntary.

Business Service Bonds

How do you protect your customers from being stolen from by your employees? Business service bonds take care of that. They’re designed to protect your customers if your employees happen to steal from them while on the job. For example, janitors and cleaning professionals often enter the private property of homeowners and businesses alike to clean for them. If an employee happens to steal jewelry or other valuable goods while on the job, your customer can be covered by this bond. You may often hear business service bonds called “janitorial service bonds” because of this. While these bonds are 100% voluntary, they’re not very expensive and just having that kind of coverage can help instill trust between you and your customers.

Contract Bonds

Contract bonds are different from license and permit bonds because they tend to be more job-specific and cover the performance of a given contract, such as staying within a budget or meeting a deadline. They can also cover aspects of a construction project, like paying for supplies, following through on bids, and other services. The most common types of contract bonds include performance bonds, bid bonds, payment bonds, and contract bonds required by some construction contracts.

Court Bonds

Court bonds are not necessarily a type of bond that a small business requires, but they are still a type of bond that you should know about. In the event of a civil court proceeding, the court might require you to get a court bond before the trial can proceed. During litigation, a small business might need various types of court bonds, including an appeal bond, injunction bonds, garnishment bonds, or cost bonds.

At American Insure-All®, we strive to provide you with a variety of options for bond insurance in Redmond that keeps your company protected in the event of unforeseen circumstances in your small business. For more information about the bond insurance options that we can offer you, or to get an estimate for your business, give our friendly team a call today at (888) 411-AUTO.