The Surety
The Surety is the party who ensures the contract will be fulfilled.
Sureties may or may not be insurance agencies, like Cross Insurance Agency, even though surety bonds are not insurance.
Bonds for your Small Business – Commercial Bonds Agency in Washington
Bond insurance can be a great asset for your business. It reassures your clients that someone will fulfill your end of the bargain, and it means you have a back-up plan if something goes wrong. All in all, it’s useful for both sides!
But did you know that bond insurance functions differently than other insurance? Bond insurance isn’t even insurance – it’s something called a surety bond.
Whereas insurance involves two parties, a surety bond involves three parties:
The Bond Itself
The guarantees of the bond depend on what’s written in the bond. If the principal can’t fulfill their contract, the surety will pay out to the other party. However, unlike insurance, the principal still has a financial obligation to repay the bond.
Surety bonds can be useful in many situations, but they can be confusing to understand. Here are some frequently asked questions about bond insurance so you can make an informed decision.
Frequently Asked Questions About Bond Insurance
What does bond insurance NOT cover?
Surety bonds don’t cover anything illegal or fraudulent, and they also can’t cover certain types of properties, damages, or locations. Speak to your Cross Insurance agent today to find out what bond insurance does or doesn’t cover.
What are the limits of bond insurance?
Surety bonds are based on a certain dollar amount, so they are limited by how much money is put into the bond. It’s not like a home or auto insurance policy that has different lines of coverage.
How much do I need?
Choosing the appropriate level of coverage depends on your situation and the needs of the other parties involved. Call a Cross Insurance agent today to determine how much bond insurance you need.
What do I need to purchase bond insurance?
Your Cross Insurance agent will need to know all your business information, including the following:
- Business name
- Business type
- Annual business income
- Tax ID numbers
- How long you’ve been in business
- The number of staff you employ
- Any other business information
Your Cross Insurance agent will let you know what other information they need to help you get the right surety bond for you.
Is bond insurance required?
Yes, it is required in certain circumstances. One instance would be if you want to bid with a state or county entity. Surety bonds are also required if you’re working with a federal agency.
What types of bond insurance is there?
There are two main categories of surety bonds:
Beyond these two types, there are many other kinds of bond insurance. Talk to your Cross Insurance agent today to ask what kind of surety bond you need for your circumstances.
Looking for bond insurance as a contractor? Check out our page about contractor bonds!
Why should I choose Cross Insurance Agency?
Bond insurance can be confusing, but Cross Insurance Agency wants to help! Every day, we strive to be:
- Personable
- Helpful
- Informative
- Friendly
- Caring
- Encouraging
- Easy-to-Understand
As an independent agency, Cross Insurance Agency puts you first. We want to help you find the best coverage that fits you and your budget, which is why we provide all the information you need to make an informed decision. Speak to a Cross Insurance agent today to get bond insurance that’s perfect for you!
If you have questions about Cross Insurance Agency or bond insurance, you can contact us via a phone call, text, or email. You can also use our booking website to schedule a visit.
Or, if you need to manage your policy, you can use our client self-service portal or our mobile app. We’re here for you whenever you need!
Get a Quote
Cross Insurance represents the top-rated insurance companies in Washington. We will compare pricing and coverage options finding you the best policy for your needs. Call us at: 888-438-6708 or click the button to the right to send us a message for your quote.
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