Surety & Fidelity bonds

While this category of coverage is included with insurance, it is not the same as an insurance policy. An insurance contract is between 2 parties — you and the insurance company. A Surety bond is a contract between 3 parties — the obligee, the principal and the surety. The obligee and the principal entire into a primary contract and the surety ensures the principal meets the terms of that contract.

At GMM insurance, our licensed and certified team can help you manage your risk and protect yourself against damages and losses during business transactions with surety and fidelity bonds. 

State and local governments often require bonds to be paid by general contractors when they accept a contract for work to be completed. You can trust our GMM insurance team to help you protect your business. 

Surety Bonds

As a business owner, you may need to create a surety bond to manage how an independent contractor works on an important project. The surety bond may include a description of the work being performed, the date on which the project must be completed, as well as the amount to be paid in damages if the obligation agreed upon is not met. This legal agreement signifies a bond of accountability between two parties and can protect your business interests in the event that the outcome is not up to the standards of the contract. 

Contract Surety Bonds

  • Bid Bond: this guarantees the contractor will enter into a contract if awarded the bid.
  • Performance Bond: this guarantees a contractor will complete a job according to the specifications of the contract
  • Payment Bond: this guarantees a contractor will pay for the services they use during a project in particular subcontractors and materials
  • Maintenance Bond: this guarantees a contractor will maintain a facility or structure for a specified period of time according to the terms of the contract.
  • Supply Bond: this guarantees the contractors, who are the suppliers, will provide all of the agreed-upon materials and supplies

Commercial Surety Bonds

  • License & Permit Bonds: this class of bonds guarantees the entity posting the bond will comply with all statutes and regulations, as well as the ordinances that govern their activities. Some of these bonds include Residential Builders Bonds ($15,000), Specialty Contractor Bonds ($5,000), USDA, Social Security Administration Bonds, Liquor Bonds and other Federal Government Bonds with certain business entities.
  • Court & Judicial Bonds: this class of bonds is written for parties in lawsuits as a guarantee required by the court in conjunction with the litigation.
  • Fiduciary Bonds: this class of bonds guarantees whoever the court designates to handle someone’s property will perform their specified duties faithfully. This could be in relation to an incompetent adult, an estate bond, or minor children.
  • Public Official Bonds: this class of bonds guarantees the honest and faithful performance of individuals in certain elected and appointed public positions, such as sheriff, magistrate, and clerk and court.
  • Fidelity or Crime Bonds: this type of bond is also referred to as an Employee Dishonesty Coverage and covers an employer from loss due to a dishonest act by its own employee. This can be written under a cond form or commercial package crime policy form.
  • Other Bonds, including utility deposit bonds, lost securities, and wage and welfare bonds.

Fidelity Bonds

With this type of surety bond, we can help protect you from damages or mismanagement by a long-term employee. These types of bonds are used to enforce employee honesty and ethical standards and prevent theft and damages. 

If you are a business owner in Lexington, South Carolina or surrounding areas and are interested in finding out more about how GMM Insurance can help protect your business with surety and fidelity bonds, contact us today!