--- title: Insurance Bonds | Berry Insurance - Massachusetts description: Berry Insurance offers insurance bonds to protect your business from regulatory, fiduciary, or contractual financial obligations. Through consultation and customization, we’ll create the bond insurance program for you and your business. image: https://www.berryinsurance.com/hubfs/Insurance-Bonds-7.jpg --- [Skip to Main Content](https://www.berryinsurance.com/business-insurance/bonds#maincontent) ![hero maze pattern](https://www.berryinsurance.com/hs-fs/hubfs/hero%20maze%20pattern.png?width=1268&height=1346&name=hero%20maze%20pattern.png) regulatory or fiduciary contract compliance # Guarantee your contract obligations and regulatory compliance with the right insurance bond ### Being “bonded” and “insured” are not the same thing -- to be properly protected, you’ll likely need both [Get a Quote](https://www.berryinsurance.com/insurance-quote-massachusetts?hsLang=en) ![Insurance-Bonds-Hero](https://www.berryinsurance.com/hs-fs/hubfs/Insurance-Bonds-Hero.png?width=1000&height=700&name=Insurance-Bonds-Hero.png) ![Insurance-Bonds-Hero](https://www.berryinsurance.com/hs-fs/hubfs/Insurance-Bonds-Hero.png?width=1000&height=700&name=Insurance-Bonds-Hero.png) ![pattern](https://www.berryinsurance.com/hs-fs/hubfs/pattern.png?width=675&height=694&name=pattern.png) ## What is an insurance bond? Before we can answer this, we should probably say what an insurance bond is not. **A bond is not an insurance policy.**  An insurance policy is an agreement between the insured (you) and the insurance company, whereby the company agrees to pay for certain claims in return for you paying a premium.  A bond (also called surety bond) is an agreement between three parties - the principal (the person purchasing the bond), the obligee (the person who receives the benefit) and the insurance company. An insurance bond is not meant to pay for claims. It is meant to provide a financial guarantee that the person or entity purchasing the bond (the principal) will reimburse the obligee should the principal default, fail to fulfill its obligations, or a claim is made. So an insurance bond is meant to prove or support the financial stability of the entity purchasing the bond. ![](https://play.vidyard.com/7wV5G4eyYrDu9H19pdZgzC.jpg) ![Top-Swoop](https://www.berryinsurance.com/hs-fs/hubfs/Top-Swoop.png?width=1899&height=76&name=Top-Swoop.png) ![Bottom-Swoop](https://www.berryinsurance.com/hs-fs/hubfs/Bottom-Swoop.png?width=1900&height=74&name=Bottom-Swoop.png) ## Does my business need to be bonded? It depends.  You may be legally required to be bonded per the state, an industry association, or a contract you’ve signed.  In addition, if you perform services in someone else’s home or business, or you or your employees have access to money, you may wish to be bonded for extra protection.  Finally, if you are involved in any construction work, you may also benefit from the additional protection from an insurance bond. ![does-my-business-need-to-be-bonded](https://www.berryinsurance.com/hs-fs/hubfs/does-my-business-need-to-be-bonded.jpg?width=1500&height=1000&name=does-my-business-need-to-be-bonded.jpg) ## What types of insurance bonds are available? There are many types of insurance bonds available, but the most common are public official bonds, license and permit bonds, fidelity bonds, and contract bonds. A **public official bond** is designed to guarantee that you will faithfully perform the duties of your office (whether elected or appointed).  A **contract bond** is used to guarantee fulfillment of your construction contractual obligations. A** license and permit bond** is used to satisfy the requirements of a government agency, such as your local city or town.  A** fidelity bond** can be used to protect your business from fraudulent acts committed by your employees.  As a business, you may need one or all of these insurance bonds, depending upon your contractual and regulatory requirements. ![type-of-bonds](https://www.berryinsurance.com/hs-fs/hubfs/type-of-bonds.jpg?width=2000&height=1428&name=type-of-bonds.jpg) ## Which type of insurance bond do I need? ### Depending on your business needs, you may require one or all of these types of bonds. ### License and Permit Bonds License and Permit bonds are used to satisfy requirements by a government agency. Some common examples of license and permit bonds are: - Professional licensure bonds (i.e. real estate, insurance, etc.) - Mortgage broker or lender bonds - Notary bonds - Private investigator bonds - Auto dealer bonds - Street repair, drain laying, demolition or street opening permit bonds - Auctioneer bond - Collection agency bond - Travel agency bond ### Contract Bonds A contract bond is used to guarantee the work of the contractor will follow the specifications in the contract or bid. Some common examples of contract bonds are: - Bid Bond: guarantees that if you are awarded a job, you will comply with the bid specs. This bond typically does not cost you anything! - Performance Bond: requires the contractor to finish a job on budget and on deadline. (usually combined with a Payment Bond) - Payment Bond: provides your subcontractors and vendors a guarantee that they will be paid for their work on the job. ### Public Officials Bonds A public official bond is used to guarantee the performance of duties for someone who is accountable to the general public. Typically these are issued to persons responsible for handling money. Some common examples of public official bonds are: - Tax Collector - Treasurer/Assistant Treasurer - Town Clerk - Constable - Subordinate handling money ### Fidelity Bonds Fidelity bonds are used to protect your clients from the actions of your employees. Some common examples of fidelity bonds are: - Employee theft/dishonesty bonds - Janitorial service bonds - ERISA (Employee Retirement Income Security Act) bonds - Probate or Executor bonds ![white swoop bottom](https://www.berryinsurance.com/hubfs/white%20swoop%20bottom-1.svg) ![white swoop top](https://www.berryinsurance.com/hubfs/white%20swoop%20top.svg) ## Got insurance bond questions? We’ve got answers. An insurance bond may not be required for your business, but it is something you may want to consider. Let us help you decide whether this coverage is right for your business. ### When should I get bonded? Sooner rather than later. The process of obtaining a bond could take as little as a day or as much as several weeks. If you need an insurance bond to satisfy regulatory or contractual obligations, you’ll want to begin this process right away. ### What will I need to provide to get bonded? Depending on the bond, you could either need to complete a simple application, or a lengthy application may be required. You may also be asked to provide financial statements, resumes for owners, bank references, and details regarding current projects and works in process. ### If I have professional liability insurance, do I need an insurance bond? Possibly. You may need to be bonded if you have a contractual obligation to do so, or if your employees have access to money or private data of your client.  An insurance bond is designed to guarantee you (also known as the principal) fulfill your obligations. Any claim against you would be paid to the third party listed on the bond (also known as the obligee). ### How much does an insurance bond cost? We wish we could give you a definitive answer here, but with so many bonds to choose from, the costs significantly vary from one to another.  The cost of a bond depends on many factors, including the type of bond needed, industry experience, the financial stability of the entity or employee being bonded, credit score, and more. ![pattern](https://www.berryinsurance.com/hs-fs/hubfs/pattern.png?width=675&height=694&name=pattern.png) ## Simplifying insurance bonds … one blog at a time ### Find the answers to all your insurance questions through the helpful resources in our free online Learning Center. [![What is an Insurance Bond-1](https://www.berryinsurance.com/hs-fs/hubfs/What%20is%20an%20Insurance%20Bond-1.png?width=600&height=200&name=What%20is%20an%20Insurance%20Bond-1.png) ### What is an Insurance Bond? Bonds are complex. We outline everything you need to know about them in this article, so you can be more confident in your coverage. Learn More ](https://www.berryinsurance.com/blog/insurance-bond?hsLang=en) [![Update-Get-New-Business-Insurance-1](https://www.berryinsurance.com/hs-fs/hubfs/Update-Get-New-Business-Insurance-1.jpg?width=1400&height=800&name=Update-Get-New-Business-Insurance-1.jpg) ### When to Update/Get New Business Insurance You want to make sure you are fully covered and getting a fair deal. Learn when it makes sense to shop for new insurance. Find Out When ](https://www.berryinsurance.com/blog/when-update-new-insurance?hsLang=en) [![Why-Review-Commercial-Insurance-Annually-2](https://www.berryinsurance.com/hs-fs/hubfs/Why-Review-Commercial-Insurance-Annually-2.jpg?width=1400&height=800&name=Why-Review-Commercial-Insurance-Annually-2.jpg) ### Why You Should Review Your Commercial Insurance Annually Annual commercial insurance reviews are essential to making sure your insurance is keeping up with your business. Read Why ](https://www.berryinsurance.com/blog/review-commercial-insurance-annually?hsLang=en) ![white swoop top](https://www.berryinsurance.com/hubfs/white%20swoop%20top.svg) Our clients are like family. See what they are saying… ## Our clients are like family. See what they are saying... ![Rated 5 Stars on Google Reviews](https://www.berryinsurance.com/hs-fs/hubfs/assets/images/google-reviews--image.png?width=501&height=64&name=google-reviews--image.png) ![Testimonial Quote Mark](https://www.berryinsurance.com/hs-fs/hubfs/assets/images/icons/green--quotes.png?width=77&height=50&name=green--quotes.png) ### “[Berry Insurance] helped me out with getting a bond for our new Treasurer/Collector very quickly. The first insurance company denied the bond and [they] quickly found another company and got the bond [issued].” Holly Y., A Massachusetts City/Town Official [Learn More About Business Policies ](https://www.berryinsurance.com/massachusetts-business-insurance?hsLang=en) ** ** ![hero maze pattern](https://www.berryinsurance.com/hs-fs/hubfs/hero%20maze%20pattern.png?width=1268&height=1346&name=hero%20maze%20pattern.png) ![hero maze pattern r](https://www.berryinsurance.com/hs-fs/hubfs/hero%20maze%20pattern%20r.png?width=1280&height=1346&name=hero%20maze%20pattern%20r.png) Get in touch ## Satisfy all your protection needs with the proper insurance bonds Fulfill all your contractual and fiduciary needs with the right bond insurance program. Simply fill out this form and a member of our commercial insurance team will be in touch. [Get a Quote](https://www.berryinsurance.com/insurance-quote-massachusetts?hsLang=en) ```json { "@context" : "https://schema.org", "@id" : "", "@type" : "InsuranceAgency", "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "Franklin", "addressRegion" : "MA", "description" : "Comprehensive business and personal insurance coverage from a New England locally-owned independent insurance agency.", "postalCode" : "02038", "streetAddress" : "31 Hayward St, Ste J" }, "aggregateRating" : { "@type" : "AggregateRating", "ratingValue" : "5", "reviewCount" : "191" }, "areaServed" : [ { "@type" : "State", "name" : "Massachusetts" }, { "@type" : "State", "name" : "Rhode Island" }, { "@type" : "State", "name" : "Maine" }, { "@type" : "State", "name" : "Connecticut" } ], "department" : { "@type" : "LocalBusiness", "image" : "", "name" : "", "telephone" : "" }, "image" : "https://www.berryinsurance.com/hubfs/Logos/berry-insurance--color-logo.png", "name" : "Berry Insurance", "openingHoursSpecification" : [ { "@type" : "OpeningHoursSpecification", "closes" : "16:00", "dayOfWeek" : [ "Monday", "Tuesday", "Wednesday", "Thursday", "Friday" ], "opens" : "08:00" } ], "sameAs" : "https://www.facebook.com/BerryInsuranceMA/", "telephone" : "(508) 528-5200", "url" : "https://www.berryinsurance.com/" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.berryinsurance.com/#organization", "@type" : "InsuranceAgency", "name" : "Berry Insurance", "url" : "https://www.berryinsurance.com/" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.berryinsurance.com/business-insurance/bonds/#webpage", "@type" : "WebPage", "about" : { "@id" : "https://www.berryinsurance.com/business-insurance/bonds/#service" }, "inLanguage" : "en-US", "isPartOf" : { "@id" : "https://www.berryinsurance.com/#website", "@type" : "WebSite" }, "name" : "Insurance Bonds (Surety) | Berry Insurance", "url" : "https://www.berryinsurance.com/business-insurance/bonds" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.berryinsurance.com/business-insurance/bonds/#breadcrumbs", "@type" : "BreadcrumbList", "itemListElement" : [ { "@type" : "ListItem", "item" : "https://www.berryinsurance.com/", "name" : "Home", "position" : 1 }, { "@type" : "ListItem", "item" : "https://www.berryinsurance.com/massachusetts-business-insurance", "name" : "Business Insurance", "position" : 2 }, { "@type" : "ListItem", "item" : "https://www.berryinsurance.com/business-insurance/bonds", "name" : "Insurance Bonds", "position" : 3 } ] } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.berryinsurance.com/business-insurance/bonds/#service", "@type" : "Service", "areaServed" : { "@type" : "AdministrativeArea", "name" : "Massachusetts" }, "audience" : { "@type" : "Audience", "audienceType" : "Business owners, contractors, public officials, fiduciaries" }, "description" : "Surety bonds that guarantee contractual and regulatory obligations for Massachusetts businesses and public officials.", "hasOfferCatalog" : { "@type" : "OfferCatalog", "itemListElement" : [ { "@type" : "Offer", "itemOffered" : { "@type" : "Service", "description" : "Government-required bonds (e.g., professional licensure, mortgage broker/lender, notary, private investigator, auto dealer, street opening/utility work, auctioneer, collection agency, travel agency).", "name" : "License & Permit Bonds" } }, { "@type" : "Offer", "itemOffered" : { "@type" : "Service", "description" : "Construction-related bonds such as Bid, Performance, and Payment bonds.", "name" : "Contract Bonds" } }, { "@type" : "Offer", "itemOffered" : { "@type" : "Service", "description" : "Bonds for officials handling public funds (e.g., Tax Collector, Treasurer/Assistant Treasurer, Town Clerk, Constable).", "name" : "Public Official Bonds" } }, { "@type" : "Offer", "itemOffered" : { "@type" : "Service", "description" : "Protect clients from employee dishonesty; examples include employee theft/dishonesty, janitorial service, ERISA, and probate/executor bonds.", "name" : "Fidelity Bonds" } } ], "name" : "Types of Insurance Bonds" }, "name" : "Insurance Bonds (Surety)", "provider" : { "@id" : "https://www.berryinsurance.com/#organization" }, "serviceType" : "Surety bonds", "url" : "https://www.berryinsurance.com/business-insurance/bonds" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.berryinsurance.com/business-insurance/bonds/#faq", "@type" : "FAQPage", "mainEntity" : [ { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Start early—bond turnaround can range from a day to several weeks. If a bond is required by a regulator, contract, or project timeline, begin the process as soon as possible." }, "name" : "When should I get bonded?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Requirements vary by bond. You may complete a short or detailed application and could be asked for financial statements, owner resumes, bank references, and information on current projects or work-in-process." }, "name" : "What will I need to provide to get bonded?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Possibly. Bonds guarantee obligations to an obligee and may be required by contract or when employees handle money or sensitive client data—separate from liability insurance." }, "name" : "If I have professional liability insurance, do I still need an insurance bond?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Costs vary by bond type and factors like experience, financial strength, credit, and the obligation being guaranteed." }, "name" : "How much does an insurance bond cost?" } ] } ```