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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 party.

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.

The Principal:
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:
The obligee is the person or business who is protected by the bond.

Types of Bonds

Commercial 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.

Fidelity Bonds:

• 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.

Contract Bonds:

• Contractors Bonds
  Specialty and General
  
• Contract Bonds (Bid & Performance Bonds)
  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 residential construction.
    
  • Maintenance Bond