Bonds in Florida
What Is Bond Insurance?
Bond insurance in Florida comes into effect when an insurance company guarantees scheduled payments of either interests or principal on a bond, in case there is a default by the issuer of the bond. Bond insurance is a protective measure taken by businesses to help a company grow.
A surety bond can also be an important risk mitigation tool for a business, but insurance and a surety bond are two different things. A surety bond is between those requiring the bond, those needing the bond, and the company supplying the bond. For claims, the principal (those who need the bond) will be required to pay for results. With insurance, the contract is between the consumer and the insurance company, and the insurance company pays out in the event of a claim.
Why Do You Need Bonds?
There are a few reasons why you might need bonds and bond insurance in Florida. If you have been told you need one, then you likely do. In order to get licensed in certain industries, you are required to have certain bonds. If you want to legally conduct business, you will need to make sure the applicable conditions are met. As a contractor, you could need a bond before you enter into a contract. In a court proceeding, the law may require you to get a court bond. Pritchards And Associates Inc. serving Okeechobee, FL can help you find the right bond for your needs.
- Contract Bond: This guarantees that the needs of the contract will be met. These include payment bonds, maintenance bonds, and supply bonds.
- Subdivision Bond: This guarantees that developers will make the land improvements that are necessary and comply with state or municipal laws.
- Commercial Surety Bond: These include all non-contract surety bonds that help with a variety of business obligations.
- License and Permit Bonds: These help ensure that those that are given a license or permit will meet their obligations under the license or permit.
- Court Bonds: These help ensure that individuals will comply with terms of court. This also includes immigration and probate bonds.
Contact Pritchards And Associates Inc. serving Okeechobee, FL to get a quote on bond insurance.