Bond Insurance

What is bond insurance?

An issuer of a bond can purchase bond insurance to guarantee scheduled payments of interest and principal on the bond to its bondholders in case the issuer defaults. Once the issuer purchases bond insurance, its credit rating is replaced with the insurer’s credit rating. Premiums are a measure of the perceived risk of failure of the issuer and are paid to the insurer in either lump sums or installments.

What are the benefits of being bonded?

Being bonded gives issuers the ability to leverage business growth. With the increased stature of having the insurer’s credit rating, a business can feel safer in taking risks to improve and grow the business. This is especially true in the construction and financial industries.

A bonded business can obtain unbiased criticism from a credit professional and seek advice in underwriting projects.

Typical Bonds written include:

  • Adoption Facilitator Bonds,
  • Airline Reporting Agency Bonds,
  • Auctioneers Bond,
  • Collection Agency Bonds,
  • Community Care Bonds,
  • Contractors License Bonds,
  • Dealer Bonds,
  • Defective Title Bonds,
  • Department of Motor Vehicle Bonds,
  • Employment Agency Bonds,
  • ERISA Bonds,
  • Escrow License Bonds,
  • Farm Labor Contractor Bonds,
  • Floating Home Bonds,
  • Form 10 (Lien Remover Bond),
  • Fundraiser Bonds,
  • Garment Industry Bonds,
  • ICC Broker Bonds,
  • Immigration Consultant Bonds,
  • Mortgage Broker Notary Bonds,
  • Performance Bond (Contractor Bond),
  • Process Server Bonds,
  • Sales Tax Bonds,
  • Talent Agency Bonds,
  • Veteran Administration Bond,
  • Welfare Bonds

and more...

Commercial & Surplus