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English Insurance Group, LLC writes a variety
of bonds. Please call us to discuss your individual bond needs.
What is a bond?
A bond guarantees the performance of a contract or other obligation.
Bonds are three party instruments by which one party guarantees
or promises a second party the successful performance of a third
The Surety (Guarantor):
The surety is usually a corporation which determines if an applicant
(principal) is qualified to be bonded for the performance of some
act or service. If so, the surety issues the bond. If the bonded
individual does not perform as promises, the surety performs the
obligation or pays for any damages.
An individual, partnership, or corporation who offers an action
or service and is required to post a bond. Once bonded, the surety
guarantees that s/he will perform as promised.
The obligee is the person or business who is protected by the bond.
Types of Bonds
- Public Official Bonds
These guarantee taxpayers that the official will do what the law
requires. A public official is expected to “faithfully perform”
the duties of the office.
- Judicial Bonds
These are written for parties to lawsuits or other court actions
(plaintiffs and defendants). In anticipation of a favorable judgment,
plaintiffs often want to take possession of the property, cash
or merchandise in question without waiting for the trial.
- Fiduciary Bonds
A fiduciary is a person appointed by the court to handle the affairs
of persons who are not able to do so themselves. The fiduciary
is often called a Guardian or Conservator if he handles the affairs
of a minor or an incapacitated person. An Administrator is a fiduciary
who handles the affairs of someone who has died. If they’re
specifically named in the will, they are known as an Executor.
Guarantee faithful performance of fiduciaries such as guardians,
trustees, administrators or executors
- License and Permit Bonds
These are required to obtain government licenses and permits.
- Employee Dishonesty Bonds
There is always the possibility that an employee will steal. The
only protection against this kind of loss are good internal control,
regular outside audits and a Fidelity Bond. They cover loss due
to any dishonest act of a bonded employee. The employee may steal
alone or with others. The loss may be money, merchandise or any
other property, real or personal. Fidelity bonds are available
in a group (blanket) or individual (schedule) form.
- Janitorial Services Bonds
- Pension Trust Bonds
Many companies offer pension plans and/or profit sharing programs
as part of a benefit package for their employees. These programs
are managed by appointed individuals associated with that company,
known as fiduciaries. To protect the investors and the money in
these funds, the individuals handling plan assets need to be bonded.
Why is this bond needed?
The Pension Reform Act of 1974 states that the fiduciaries of
a pension or profit sharing fund are required to post a bond for
10% of the amount of funds handled. As an example, a person who
manages a profit sharing program that involves $250,000 in funds
must post a bond for $25,000.
- Contractors Bonds
Specialty and General
- Contract Bonds (Bid & Performance
Assures the fulfillment of contractual obligations such as:
- Bid Bond – usually the first step
in a bonded contract process. Each bidder for a contract must
guarantee the price bid by posting a certified check or indemnity
bond, which is forfeited if the contractor fails to enter
into the contract awarded. Usually the amount forfeited is
the difference between his bid and the next lowest bid. Bid
Bonds guarantee that the contractor will enter into a contract
at the amount bid. Once this is done, the bid bond is released.
- Payment Bond
- Performance Bond – Guarantees
performance of the terms of a contract. It may be for the
construction of a building or road or it may be a supply contract.
These are often required in the private sector when doing
- Maintenance Bond
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Copyright © 2005-2014 English Insurance Group, LLC
5005 200th ST SW, Suite 200 B, Lynnwood, WA 98036
Phone: (425) 673-7948 Fax: (425) 673-7942
IMPORTANT NOTE: This Web site provides only a simplified description
of coverages and is not a statement of contract. Coverage may not
apply in all states. For complete details of coverages, conditions,
limits and losses not covered, be sure to read the policy, including
all endorsements, or prospectus, if applicable. Please feel free to
contact us for further information.