Bonds are typically distinguished between Surety Bonds, which guarantee the performance of a contract, or Fidelity Bonds, which protect against the dishonesty of employees or persons occupying positions of trust. Most all types of bonds fall into these 2 categories but often have their own names. Listed below are some commonly used bond names with a brief explanation of each.
Today's construction industry is more competitive than ever and more project owners require that their contractors provide them surety bonds guaranteeing their performance of the contract and payment to certain subcontractors and suppliers. Our bonding experience with several of the largest contractors in Vermont allows us to provide unique bonding solutions directly and expeditiously for our clients. We understand your business and your financials and we have earned the trust of several bond companies to best service your needs…
Contract Bonds
Guarantees the integrity of the various stages of a business relationship: the bid, performance, and payment.
Court & Judicial Bonds
Including plaintiff and defendant bonds, which guarantee payment of damages.
License & Permit Bonds
Governmental bodies can refuse the granting of permits until your business proves that relevant laws, regulations, or ordinances will be complied with. A license or permit bond can prove sufficient, allowing you to proceed.
Notary Public & Public Official Bonds
Guarantees faithful performance of duties according to applicable statutes.
Probate Bonds
Required of administrators, executors and guardians, probate bonds guarantee faithful performance of duties.
How can you establish a bond line?
In order to set up this type of arrangement with a Surety Company, you must first provide all of the necessary documents (typically: CPA prepared financial statements, bank line letter, references, resumes of key employees). Upon review and acceptance, the Surety Company will assign a single job and aggregate bond limit for your account. This is a convenient method for bond-active Contractors to secure bid and performance bonds.
