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Bonds

Man at courthouse

Surety Bonds, also referred to as Bonding

While this category of coverage is included with insurance, it is, in fact, not insurance but rather a category all unto itself.  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 enter into a primary contract and the surety ensures the principal meets the terms of that contract.  And unlike insurance, losses are not expected in surety.

Contract Surety Bonds

This type of surety bond is used heavily in the construction industry where the surety guarantees their contractor (the “principal”) will meet the terms of the construction contract with the project owner (the “obligee”).  There are various types of contract surety bonds including:

  • 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 utilize during a project in particular subcontractors and material.
  • 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 contractor, who is the supplier here, will provide all the contractually obligated materials and supplies.

Happy construction specialists sealing the deal at a construction site

Commercial Surety Bonds

This category is the “catch all” for all other bonds that do not fit in the Contract Surety category.  There are six broad classifications underneath the Commercial Surety heading – License & Permit Bonds, Court & Judicial Bonds, Fiduciary Bonds, Public Official Bonds, Fidelity Bonds, and Miscellaneous & Federal Bonds.

  • License & Permit Bonds – This class of bonds guarantees the entity posting the bond will comply with all statutes, regulations, and/or ordinances that govern their activities.
    • Residential Builders Commission, Commercial Builders, Plumbers, Painters and other utility companies usually are state required to supply these bonds along with their license applications.
    • USDA Bond, Social Security Administration Bond, Liqour Bonds and other Federal Goverment Bonds with certain business entities
    • A popular example is the South Carolina Residential Builders Commission Bond
  • Court & Judicial Bonds – This class of bonds is written for parties in lawsuits as a guarantee required by the court in conjunction with litigation.
  • Fiduciary Bonds – This class of bonds guarantees that whomever the court designates to handle someone’s property will perform their specified duties faithfully.
  • Public Official Bonds – This class of bonds guarantees the honest and faithful performance of individuals in certain elected and appointed public positions.
    • Examples: Sheriffs, Sheriff’s Deputies, Magistrates, Clerks of Court, Magistrate Clerks, etc.
  • Miscellaneous Bonds – These bonds do not fall in one of the categories above, but they protect consumers from contracts/agreements in which people fail to perform the agreed upon task.
    • Some examples of miscellaneous bonds include lost securities, wage & welfare, and utility deposit.
  • Fidelity Bonds – This type of bond is also referred to as Employee Dishonesty Coverage and covers an employer from loss due to a dishonest act by its own employee. While called a bond, this actually functions like an insurance policy where it is a 2 party arrangement.  In fact, many insurance carriers cover this risk under their commercial package crime policy form rather than a bond form.

NOTE: This bond list is not exhaustive.  You should always meet with a qualified insurance professional to truly identify which bonds are needed for your exact situation.

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This week we have some articles on cars for your reading pleasure!

Have you ever thought about getting a hybrid car? If so, here are some pro/cons to help you on your way to making that decision!

Happy reading:
travl.rs/3EZpA1q

#hybrid #whatshouldiget #beintheknow #knowledgeispower #brightideas #savemoney #electiccars #ProsCons #happyreading #BeSmart #livingstoninsurancesc
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2 days ago
This week we have some articles on cars for your reading pleasure!

Have you ever thought about getting a hybrid car?  If so, here are some pro/cons to help you on your way to making that decision! 

Happy reading: 
https://travl.rs/3EZpA1q

#hybrid #whatshouldiget #beintheknow #knowledgeispower #brightideas #savemoney #electiccars #proscons #happyreading #besmart #livingstoninsurancesc
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Fun Friday Photo!

#5turkeysinarow #doyouseethem #hideandseek #camouflage #nature #whendoesthiseverhappen #thisiscolasc #weloveourtown #birdsofafeatherflocktogether #funtimes #funfridayphoto #livingstoninsurancesc
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5 days ago
Fun Friday Photo!

#5turkeysinarow #doyouseethem #hideandseek #camouflage #nature #whendoesthiseverhappen #thisiscolasc #weloveourtown #birdsofafeatherflocktogether #funtimes #funfridayphoto #livingstoninsurancesc
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Earlier this week, we answered questions like: what is comprehensive and what is collision insurance?

Today, we'd like to shed some light on what an umbrella policy actually is. Umbrella Insurance policies have little to do with rain and they are something that many people do not think they need--BUT after reading this blog article we wrote, you might change your mind!

Read up here:
bit.ly/3MAUpMq

#knowledgeispower #beintheknow #Goodstufftoknow #insurance #whatisanumbrella #UmbrellaPolicy #worksmart #doineedthis #helpfulhints #smartstuff #wisdom #livingstoninsurancesc
... See MoreSee Less

1 week ago
Earlier this week, we answered questions like: what is comprehensive and what is collision insurance? 

Today, wed like to shed some light on what an umbrella policy actually is. Umbrella Insurance policies have little to do with rain and they are something that many people do not think they need--BUT after reading this blog article we wrote, you might change your mind! 

Read up here:
https://bit.ly/3MAUpMq

#knowledgeispower #beintheknow #goodstufftoknow #insurance #whatisanumbrella #umbrellapolicy #worksmart #doineedthis #helpfulhints #smartstuff #wisdom #livingstoninsurancesc
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Sometimes we need simple answers to simple questions. Well, we have it!
Basic questions that one might ask are:
What exactly IS comprehensive insurance? And what exactly IS collision insurance? What's the difference?

Auto Owners, one of our great carriers, has some simple and straight answers right here: bit.ly/37RtVav

#happyreading #simple #shortandeasy #beintheknow #smartcookie #helpfulthingstoknow #wisdom #BeWise #thingstoknow #helpmeunderstand #livingstoninsurancesc
... See MoreSee Less

1 week ago
Sometimes we need simple answers to simple questions. Well, we have it! 
Basic questions that one might ask are: 
What exactly IS comprehensive insurance? And what exactly IS collision insurance?  Whats the difference? 

Auto Owners, one of our great carriers, has some simple and straight answers right here:  https://bit.ly/37RtVav

#happyreading #simple #shortandeasy #beintheknow #smartcookie #helpfulthingstoknow #wisdom #bewise #thingstoknow #helpmeunderstand #livingstoninsurancescImage attachmentImage attachment
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Fun Friday Photos!

#Teamsters #dressalike #wedidnotplanthis #livingstoninsurancescneverlookedsogood #wearthelogo #represent #bestteam #bestdressed #funtimes #weekendherewecome #livingstoninsurancesc
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2 weeks ago
Fun Friday Photos! 

#teamsters #dressalike #wedidnotplanthis #livingstoninsurancescneverlookedsogood #wearthelogo #represent #bestteam #bestdressed #funtimes #weekendherewecome #livingstoninsurancesc
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