Contracting Bonds Boswell Pennsylvania

A bond is basically a loan in which the lender is a common everyday consumer and the borrower is the government, an agency, or a company. The U.S. Treasury, municipalities, and companies issue or sell bonds to obtain certain amounts of money to fund their day-to-day operations or to finance specific projects. Purchase of bonds enables the borrower to invest cash that will eventually be returned, sometimes with added interest.

Because bonds are actually loans, the amount of the bond is the principle, and interest is paid on the principle: usually at a fixed rate. Bond insurance protects the issuer if they are unable to follow through on their end of the “bond bargain.” By paying an insurance premium, the bond issuer gains the security of knowing that the principle and interest of the bond will be paid for if the issuer in unable to do so.

Bonds which provide protection to the beneficiaries of the bankruptcy action that the bonded trustees, appointed in a bankruptcy proceeding, will perform their duties and handle the affairs according to the rulings of the court.

Bid Bonds - Bonds which provide financial assurance that the bid has been submitted in good faith, and that a contractor will enter into a contract at the amount bid and post the appropriate performance bonds. These bonds are used by owners to pre-qualify contractors submitting proposals on contracts

Blanket Bonds - Bonds which protect against dishonesty of all of the employees of an entity to the stated amount of the bond.

Blanket Position Bonds - Bonds which protect against dishonesty of each of the employees of an entity stated on the bond to the stated amount of the bond.

Blanket Public Official Bond - Blanket public official bonds cover all public employees of the public entity stated on the bond to the stated amount of the bond.

Commercial Bonds - A general classification of bonds that refers to all bonds other than contract and performance bonds. Commercial bonds cover obligations typically required by law or regulation. Each bond is unique to the circumstances at hand.

Commercial Blanket Bonds - These bonds provide a single amount of coverage to cover dishonest acts of employees, regardless of the number of employees involved in the loss. In other words, this type of bond covers all employees to the amount stated on the bond.

Contract Bonds - A general classification of bonds that provide financial security and the construction assurance on building and construction projects by assuring the project owner (obligee) that the contractor (principal) will perform the work and pay certain subcontractors, laborers, and material suppliers.

Fidelity Bonds -Bonds designed to protect against dishonesty. Generally, the bond protects against the dishonesty of employees. These bonds cover losses arising from employee dishonesty and indemnify the principal for losses caused by the dishonest actions of its employees.

Fiduciary Bonds - Bonds which protect against dishonest accountings and a lack of faithful performance of duties by administrators, trustees, guardians, executors, and other fiduciaries. Fiduciary bonds, in some cases referred to as probate bonds, are required by statutes, courts, or legal documents for the protection of those on whose behalf a fiduciary acts. They are needed under a variety of circumstances, including the administration of an estate and the management of affairs of a trust or a ward.

License and Permit Bonds - License and Permit Bonds are required to obtain a license or permit in many cities, counties, states or other political subdivisions. They may be required for a number of reasons, including the payment of certain taxes and fees or providing consumer protection as a condition to granting licenses related to selling things such as motor vehicles or contracting services.

Maintenance Bonds - Maintenance Bonds provide for upkeep of the project for a specified period of time after a project is completed. These bonds protect against defective workmanship or materials

Miscellaneous Bonds - Miscellaneous Bonds cover performance of contracts and agreements with private parties and government agencies. e.g. lost securities, utility deposit, wages and welfare.

Name Schedule Bonds - A type of public official or fidelity bond that lists the specific names and amounts of each named individual bonded. Name schedule bonds use one bond, but attach a schedule of individual names of the bonded public officials. Each name will list a specific dollar amount for which that individual is being bonded. These may be used to bond a panel of city council members or similar body of officials.

Notary Public Bonds - Include bonds that are required by statutes to protect against losses resulting from the improper actions of notaries

Payment Bonds - Payment bonds cover payment of the contractor's obligation under the contract for subcontractors, laborers, and materials suppliers associated with the project. Since liens may not be placed on public jobs, the payment bond may be the only protection for those supplying labor or materials to a public job.

Performance Bonds - Performance Bonds cover performance of the terms of a contract. These bonds frequently incorporate payment bond (labor and materials) and maintenance bond liability. This protects the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.

Position Schedule Bonds - A type of fidelity or public official bond, which lists specific positions and their corresponding penalty, amounts. Position schedule bonds use one bond, but attach a schedule of positions to be bonded. Each name will list a specific dollar amount for which that individual is being bonded. This type of bond may be used to bond certain positions that have a high amount of turnover. Using a position instead of a name will reduce the paperwork involved year-to-year.

Public Official Bonds -Public Official Bonds protect against dishonesty and lack of faithful performance by a public official. These bonds are required by statutes and ordinances.

Reclamation Bonds - A bond which provides protection in the event that a person or entity does not restore land, that it has mined or otherwise altered, to its original condition

Supply Bonds - Supply Bonds cover performance of a contract to furnish supplies or materials. In the event of a default by the supplier, the surety indemnifies the purchaser of the supplies against the resulting loss.

Surety Bonds -Surety bonds are three-party agreements in which the issuer of the bond (the surety) joins with the second party (the principal) in providing protection to a third party (the obligee) regarding fulfillment of an obligation on the part of the principal. An obligee is the party (person, corporation or government agency) to whom a bond is given. The obligee is also the party protected by the bond against loss.

When a bond issuer wants to assure potential investors that a bond is really and truly safe, they often turn to a bond insurer, like Keystone Insurers Group . We can make both you and your potential investors feel comfortable and secure with their bond purchase. Simply fill out our quick and easy online form or call us at 814-629-5607 today for a free secure bond insurance quote.

A Pennsylvania Insurance Agency offering Bonds policies in Boswell,
Jerome PA, Hooversville PA, and Jennerstown PA Pennsylvania.