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Bond Quotes
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 if the issuer is unable to do so. There are several types of bonds issued for businesses to ensure the productivity and quality of a contractual obligation. The two main types of bonds are:Fidelity Bond
A fidelity bond is an insurance policy that reimburses an employer for common financial crimes such as embezzlement, forgery, robbery, safe burglary, computer fraud, counterfeiting, etc. These are schemes and crimes that take advantage of weaknesses in a company’s financial account. A fidelity bond may also cover an employer as the result of an employee’s negligence.
Surety Bond
A surety bond is a bond issued by an entity on behalf of a second party, guaranteeing that the second party will fulfill an obligation or series of obligations to a third party. In the event that the obligations are not met, the third party will recover its losses via the bond.
Contact Berry Insurance Agency, Inc. today to learn more about bond insurance.
