Contractors that work on public projects are required to provide surety bonds. Carriers that specialize in insuring asbestos and/or lead abatement contractors have expanded into the field of surety bonds for these contractors because they understand their exposures. Specialized surety companies that concentrate on environmental bonds include:
This content is sponsored by Goldleaf What is a surety bond? A surety bond is a three party agreement, which legally binds together the party needing the bond (principal), the party requiring the bond (obligee) and a surety company providing the bond. The surety company guarantees that the obligations of the principal to the obligee will be performed in accordance … Read More
Certain types of surety bonds that do not easily fall into natural and well-defined classifications are considered more difficult to place than normal bond classes. These are classified as miscellaneous bonds and collateral is required when they are written. Because of the frequency of use and the amount of premium volume, lost instrument or lost securities bonds are the most … Read More
It can be difficult to find bond markets willing to write coverage on contractors just starting in business. A number of programs are available for contractors that have less than $500,000 in annual revenue. Coverage is available for performance, payment, and bid bonds for a variety of small and artisan contractors. Sureties examine the contractor’s stability as well as its … Read More
Third-party fidelity insurance coverage is available to a variety of contractors that make regular service calls to homes and businesses. Examples are air conditioning and heating services, appliance and television repair services, burglar alarm installation businesses, maid and janitorial services, pest control services, and detective and security guard services. Computer service providers are also eligible for this coverage because their … Read More
Bid and performance bonds for contractors engaged in pollution cleanup and other environmental work are available from specialty insurers. These bonds supplement the pollution liability, commercial general liability, and auto liability coverages available to these contractors. Surety limits are provided on a per-job basis and can be substantial.
The Environmental Protection Agency (EPA) establishes requirements for owners and operators of non-hazardous waste landfills that require bonds. These bonds are written by surety companies that specialize in them and other miscellaneous bonds. The bond program for non-hazardous waste landfills is designed for municipal solid waste landfills and demolition facilities. The financial responsibility may be accomplished through bonding, insurance, letters … Read More
The Excess Bank Employee Dishonesty Bond provides high limits bankers blanket bond coverage. This bond is written over Financial Institution Bond-Standard Form No. 24’s underlying limits. The excess bond protects banks against catastrophic employee dishonesty losses. The standardized excess blanket bond is Excess Bank Employee Dishonesty Bond-Standard Form No. 28. There is no specific formula to determine adequate limits for … Read More
This is a highly specialized performance surety bond or guaranty insurance that was originally designed for investors or manufacturers of alternative energy sources. It provides financial protection if a system does not perform as engineered or designed. This type of insurance encourages investment and development of both alternative energy sources and other types of manufactured products.
The United States Customs Bureau requires that an importer secure a bond to guarantee that it will pay all duties on goods brought into the country. Shippers must secure open customs bonds that cover shipments on a continuous basis. Bonds for single shipments are equal to the value of the goods and include applicable duties and fees. Related to customs … Read More
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