Insurance Myths

Myth #18: I use my car for my delivery job. I’m not self-employed, so I’m still covered.
If your vehicle is used for anything but personal use, then you probably need to extend your personal auto policy to cover business use of your vehicle. Be sure you understand what is and what isn’t covered by your policy. The best way to find out is to review your policy and call us with questions.

Bonds (Business)
Performance Bonds A performance bond is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. For example, a contractor may cause a performance bond to be issued in favor of a client for whom the contractor is constructing a building. If the contractor fails to construct the building according to the specifications laid out by the contract (most often due to the bankruptcy of the contractor), the client is guaranteed compensation for any monetary loss up to the amount of the performance bond.

Performance bonds are commonly used in the construction and development of real property, where an owner or investor may require the developer to assure that contractors or project managers procure such bonds in order to guarantee that the value of the work will not be lost in the case of an unfortunate event (such as insolvency of the contractor). In other cases, a performance bond may be requested to be issued in other large contracts besides civil construction projects.

The term is also used to denote a collateral deposit of "good faith money", intended to secure a futures contract, commonly known as margin.

Performance bonds are generally issued as part of a 'Performance and Payment Bond', where a Payment Bond guarantees that the contractor will pay the labour and material costs they are obliged to.

Surety Bonds In simplest terms, a surety bond is a guarantee; what the bond specifically guarantees depends on the language of the bond.

Surety bonding is a form of credit, not insurance. However, many are mislead to believe so, as many refer to surety bonds as surety insurance or surety bond insurance.

Surety bonds are a three party agreement that acts as insurance for the obligee, the party requiring the bond (usually the government) of the principal (you).

The final party involved is the surety company, that's where we come into play. We only use top rated surety companies to ensure they meet the financial requirements to be accepted by local, state, and Federal governments.

Fidelity Bonds A Fidelity Bond is the same as Crime Insurance which provide first party coverage or in other words, coverage for the business owner. This coverage would be ideal for any business that has at least one employee or a Million. We are able to provide Fidelity coverage for almost any business whether it is for a mortgage broker or a new retail store or a casino and everything in between.

What does a fidelity bond do?
Its primary coverage is employee theft. This will pay for loss or damage to money, securities and other property directly from theft or forgery by an employee.

Several other agreements can be added or included in your Fidelity / Crime policy to protect you from someone other than an employee. Such as:

  • Forgery or Alteration
  • Inside the Premises – Theft of Money & Securities
  • Inside The Premises Robbery or Safe Burglary of other property
  • Outside The Premises Theft of Money & Securities and Robbery of Other property
  • Computer Fraud
  • Money Orders And Counterfeit Currency

Other coverage could apply depending on the type of business and insurance company providing the policy.

The premium will be determined after a review of your completed application, but will be directly affected by the type of business, coverage, limits desired and employee count.

Please include business financials (if available) with your submission. For Fidelity Bond limits of $1,000,000 or more business financial are required.