Commercial Surety Bonds
A commercial surety bond agency ensures that your business is protected from losses through a detailed contract. The many subsets of commercial bonds allow you to cater each bond to the specific agreements that occur in the course of business.
You may be familiar with some commercial bonds already, including license and permit bonds which ensure the obligor complies with the law. Other ones like court and probate bonds which protect your business from losses in court proceedings and fidelity bonds that work in an insurance protection capacity may be a new and helpful resource for your business.
As a commercial surety bond agency, we’re confident we can provide extraordinary service for you from the first bond application to high-profile, multi-million dollar guarantees. Here are just some of the commercial surety bonds we’re proud to have written for our clients.
Court Bonds are typically required in civil proceedings when taking action through a court of law. These bonds protect against possible losses resulting from the court case’s outcome.
Court Bonds are divided into two categories: Judicial Bonds & Fiduciary/Probate Bonds
Appeal Bond (also known as a Supersedeas Bond): An appeal bond is often required when a court decision has been issued and an appellant wishes to appeal the decision to a higher court. The bond suspends the court decision until the appeal has been either affirmed or denied by the appellate court. The bond guarantees that if the appeal is denied, the appellant will satisfy the original judgement.
Attachment/Garnishment bond: This bond is required when a Plaintiff wishes to attach property belonging to the Defendant as security for a claim made against the Defendant while waiting for the case to make its way through the courts. The bond guarantees the payment of damages if it is determined the Defendant’s property is found to be wrongfully attached.
Injunction Bond: Injunctions are issued when the Plaintiff wants to prevent the Defendant from a certain action. An injunction bond guarantees the Plaintiff will pay court fees, costs and damages sustained by the Defendant if the court decides the injunction was wrongfully granted.
Replevin Bond: The act of Replevin allows a Plaintiff to take possession of property in question before a court trial begins. The bond ensures the Defendant will receive the property back, and in the same condition as when Replevined, if the court rules in their favor. The bond also guarantees the Plaintiff will be responsible for all legal costs, fees, and damages sustained by the Defendant with the issuance of the Replevin.
Discharge of Mechanic’s Lien Bond (also known as a Release of Lien Bond): If a builder, contractor, or supplier is in a dispute over payment on a project they can file a Mechanic’s Lien on the property as a way to seek payment for their service or materials. This lien then attaches itself to the property. A Discharge of Mechanic’s Lien Bond will transfer the lien from the property to the bond and allow the owner of the property the legal right to sell or deal with the property while the payment matters are being resolved. The bond then guarantees satisfaction if the court upholds the original lien.
A Fiduciary is an individual who has been granted power over another person’s interests, assets, or person when that person can no longer manage them on their own.
Fiduciary Bonds (also known as Probate Bonds) guarantee that the Fiduciary will comply with the courts instructions and execute their duties honestly and faithfully. The bond protects the Fiduciary’s clients from dishonest practices such as embezzlement, theft, fraud, or misrepresentation.
Fiduciary bonds include the following:
Administrator Bond (also known as a Personal Representative Bond or Executor Bond) – An Administrator is a person legally appointed by the court to manage and dispose of the assets of a deceased person. An Administrator Bond guarantees they will ethically perform their fiduciary responsibilities such as settling debts, cancelling accounts, and disbursing the estate according to law.
Guardianship Bond – A Guardian is an individual appointed by the court to manage the assets and/or day to day care of a minor child or an adult deemed incompetent to handle their own affairs. The bond guarantees the Guardian will act in the best interest of the person subject to the guardianship and protects against unethical or illegal actions made by the guardian.
VA Fiduciary Bond – much like a guardian bond, an individual who is appointed as Fiduciary of any individual entitled to receive VA benefits may be required to provide this bond to the U.S. Department of Veterans Affairs to guarantee their faithful performance as they oversee the management of the VA benefit payments.
Receiver Bond – A Receiver is an independent party appointed by the court to receive, manage, and preserve the property of others. Receivers are often appointed in cases where a suit is pending final outcome, a company cannot meet its financial obligations, or a company enters bankruptcy. Upon being appointed as a Receiver, a bond is required to guarantee the faithful performance of the duties and obligations under which the court orders them to act.
Trustee Bond – A Trustee is an individual or member of a board appointed to control or manage property and other assets held in trust. The bond guarantees the ethical performance of the Trustee with respect to carrying out their duties as the administrator, executor, trustee, or other court deemed designation. Should the Trustee be found to have caused a loss through fraud or malfeasance, the bond would reimburse those affected.
License and Permit Bonds
- Contractor License Bonds
- Lost Instrument Bond
- Business Service Bonds
- ERISA Bonds
Financial Guarantee Bonds
- Franchise Agreement Bonds for Waste Haulers
- Tipping Fee Bonds
- Utility Deposit Bond