Frequently Asked Questions About Notary Public Bonds

In most states, cities and counties, a notary public needs to be bonded. However, if you are a notary public, or are utilizing their services, you may not know much about notary bonds. Getting answers to the questions you have will help you to better understand why they are required and what they protect against. Here are three frequently asked questions about notary public bonds.

What is a Notary Surety Bond?

All notaries are required to follow the law when notarizing documents. If they fail to do so, they can be held financially responsible for any costs incurred by the harmed or wronged party. In most states, cities and counties, you are required to show that you can cover the minimum amount of losses as required by law, typically $10,000. For a percentage of the coverage amount, you can purchase a bond from a licensed insurance carrier. The state retains the bond to […]

Pay Less for Contractor License Bonds

Would you like to pay less for contractor license bonds? If you own a construction company, chances are you are looking for the lowest possible bond rates you can find. Finding lower contractor license bond rates can be difficult, however, it is worth the effort to try if you want to pay less.

Obtaining a contractors license bond is essential to working in the construction business, but you should not pay more for your bond than necessary. Many business owners are unaware that they may be inadvertently driving up the costs of their bonds. Calling a broker can help when it comes to paying less for contractor license bonds. We have the ability to search many insurance carriers to provide the best possible price.

What follows are some steps you can take to lower your bond rates:
1. Check your credit score. Good credit is essential to getting good bond rates. If you are looking to […]

Why Telemarketers Need a Surety Bond

When it comes to telemarketers, surety bonds are a critical means of providing monetary protection and strengthening industry regulations. Why telemarketers need a surety bond. A telemarketing surety bond is essentially a binding contract between three parties. By purchasing the bond, the principal, in this case the telemarketing business, promises to uphold industry standards in getting the job done. The obligee is the government agency that ensures such a bond is taken out in the first place to get a permit to conduct telemarketing, and the surety is the underwriter issuing the bond for the principal. If a breach of the terms of the bond occurs, the obligee would make a claim against the principal, be proven right, and receive compensation from the surety. As opposed to some insurance scenarios, however, the principal does not get off scot-free. Instead, the principal is responsible for repayment of the surety for […]

Security and Fidelity Bonds are Interrelated but not Identical

Against the best efforts of the business community and in spite of background checks, fraud and contractual violations are rife, but, thankfully, security bonds and fidelity bonds comprise great ways to ward against them. Understanding the difference between a security bond and a fidelity bond might sound like choosing whether to bake apple pie or apple pie, though. Safety, security, surety, fidelity…don’t these words mean the same thing? Not exactly. When it comes to insurance, security bonds and fidelity bonds are interrelated, but not identical.

A security bond, also known as a surety bond, is a way of making sure that one party, called the obligee, who has formed a contractual relationship with another member, the principal, will be compensated in case the principal doesn’t hold up their end of the deal. Surety bonds are often used when property owners hire contractors and are common in court cases. In the […]

Difference Between Security and Fidelity Bonds

Against the best efforts of the business community and in spite of background checks, fraud and contractual violations are rife, but, thankfully, security bonds and fidelity bonds comprise great ways to ward against them. Understanding the difference between a security bond and a fidelity bond might sound like choosing whether to bake apple pie or apple pie, though. Safety, security, surety, fidelity…don’t these words mean the same thing? Not exactly. When it comes to insurance, security bonds and fidelity bonds are interrelated, but not identical.

A security bond, also known as a surety bond, is a way of making sure that one party, called the obligee, who has formed a contractual relationship with another member, the principal, will be compensated in case the principal doesn’t hold up their end of the deal. Surety bonds are often used when property owners hire contractors and are common in court cases. In the […]

Many Start-Ups Overlook the Need for Surety Bonds

If you are starting your own business, one of the last things you may think about is obtaining a surety bond. When it comes to start-ups, however, surety bonds are an important consideration.

Many business owners mistakenly believe that if they have insurance, they don’t need a surety bond. But surety bonds and insurance serve two very different purposes. Insurance is a promise of compensation for specific losses in exchange for periodic payments. It is designed to protect financial well-being in the event of unexpected loss.

Surety bonds, on the other hand, are similar to credit and provide financial and legal protection for businesses. They also provide a guarantee that a contract will be honored by an individual or company and provide financial protection in the event that it isn’t honored.

Surety bonds are an agreement between three parties:

The surety company or other agency that issues the surety bond.
The principal, which is […]

Insurance vs. Surety Bonds

Do you know the difference between being bonded and being insured? If you answered no to this question you are not alone. The answer is that insurance protects against loss while a surety bond protects against breach of contract.

Of course, it is a little more complicated than that so let’s break down the differences:

Difference No. 1: Insurance is a two-party contract between the insured and the insurance company. The insurance policy, or company, promises that the insured with be compensated if there is a covered loss. A surety bond is a contract between at least three parties. The surety is issued by one party on behalf of the principal, or second party. The contract guarantees that the second party will honor an obligation to the third party, called an obligee. If the obligation is not met, the obligee can recovers losses under the surety bond.

Difference No. 2: With insurance, […]

The “Three Cs” of Surety Bonds

If you are a contractor, chances are you have heard of the “Three Cs” of contract surety bonds. If not, here is a brief tutorial that will help to explain it.

The “Three Cs” refer to how an underwriter views an individual contractor’s Character, Capacity, and Capital. These “Three Cs” help a bond underwriter evaluate how a contractor should be rated.

Character: Does the contractor’s record indicate that they have been responsible and have a proven track record of fulfilling their obligations and meeting the terms of their contracts? Unfortunately, contractor default can be a common occurrence. When such a default happens, a project owner must declare, formally, a breach of contract. The surety bond provider then conducts an investigation before any claim is settled. This impartial investigation protects the contractor in cases when a project owner declares that the contractor is in default but that is not the case. After […]

Safety Pitfalls of Filling Potholes

Many people wonder why so many workers are needed for pothole repair. Although only two or three workers are required to actually repair a pothole, keeping those workers safe is another job in itself. In fact, to keep workers safe while they are filling a pothole, a crew of up to 10 workers may be necessary depending on where the pothole is being filled.

The large number of workers involved in patching potholes is designed to keep crew members protected from fast-moving traffic and provide as many barriers as possible between workers and the large number of vehicles passing by.

Potholes on an expressway require the most workers because of the volume of traffic. Even more workers may be necessary if the pothole is on or near an exit ramp.

Here is an example of a typical pothole-filling crew:

One blocker truck driver. Usually a crew chief, he or she drives the truck […]

The Importance of Construction Surety Bonds

What Are Construction Surety Bonds?
Construction surety bonds, or contractor’s license bonds, are used to ensure that construction projects are covered in the event that the contractor hired to do the job does not complete it. The “obligee,” or project owner, contracts with the “principal,” or contractor, to complete a specific project. The contractor then secures a surety bond from a surety company or broker who sells contractor’s license bonds. Patriot Bonding LLC is one such broker.

In the event that the contractor fails to complete the project, the surety company must either compensate the project owner for their losses or find another contractor to complete the project according to the contract specifications.

Contractors wishing to bid on Federal, state or local projects are required to be bonded to do so. Increasingly, private companies are requiring contractors to have bonds as well. Additionally, some areas require bonds to be in place before issuing a […]