What is being bonded?
Being bonded means that a bonding company has secured money that is available to the consumer in the event they file a claim against the company. The secured money is in the control of the state, a bond, and not under the control of the company. Let’s say that you hire a cleaning company and they end up stealing your Artwork. Well, you would file a claim against the company and, after an investigation, would be paid out by this bond.
This is slightly different but similar to what it means for an employee to be bonded. Being bonded in that case means that a bonding company has investigated your background and finds that you’re trustworthy and “good” enough to insure. In general, this is generally done when an employee has to handle large amounts of money or handle valuable property like jewelry or art. There is a very extensive and deep background check involved and what the employer gets is insurance that you won’t steal. If you do, then the bonding company pays out the amount of the theft.
There are multiple reasons a company or person would need a bond, and we have solutions to them all. Here are some different bonds that we can offer:
Contract bonds help protect a project owner from financial loss if the bonded contractor fails to fulfill the terms and conditions of a contract agreement. ERIE offers several contract surety bonds:
- Bid or Proposal Bond
- Payment Bond
- Performance Bond
- Maintenance Bond
- Supply Bond
The approval process requires the prequalification of the contractor. ERIE also offers a quick bond approval program for those contractors in need of a bond under $500,000.
License and Permit Bonds
A license or permit bond helps ensure that a business complies with appropriate license and permit regulations as required by state law, municipal ordinance or by some other regulation and in some instances by the federal government or its agencies. The available bonds are:
- Auctioneer Bond
- Real Estate Broker Bond
- Gasoline Tax Bond
- Liquor and/or Beer Bond
- Home Improvement Bond
- Electrician Bond
- Plumbers Bond
- Fuel Dealer Bond
- Motor Vehicle Dealers Bond
Public Official Bond
The public official bonds are required by states, counties, municipalities or another political subdivision other than the federal government. They are designed to guarantee the public that the newly elected or appointed official faithfully will perform the duties of that office. The bonds offered are:
- Tax Collector Bond
- Notary Public Bond
- Constable Bond
- Sheriff or Deputy Sheriff Bond
- Treasurer-State, County, City, School Bond
- Clerk of Court Bond
- Clerk, City or Clerk-Treasurer Bond
ERIE offers both judicial and fiduciary bonds. Judicial bonds may be required by either the defendant or the plaintiff in connection with litigation. The bonds that are available through ERIE include:
- Attachment-Plaintiff Bond
- Costs-Plaintiff Bond
- Indemnity to Sheriff Bond
- Injunction-Plaintiff Bond
- Liquidator Bond
- Replevin Bond
A fiduciary bond guarantees that a person appointed by the courts to handle affairs of another will be faithful in his/her duties. The available bonds are:
- Administrator Bond
- Guardian Bond
- Trustee Bond
The bonds that fall into the miscellaneous category generally have characteristics of guaranteeing the payment of monies. They include:
- Lost Instrument Bond – Stocks, Bonds, Checks and Certificates of Deposit
- Airlines Reporting Corporation Bond
- Wage and Payment Bond
We offer numerous bonds for all types of risks, not just what is listed above. Whatever the bond may be, give us a call first!
Contact us at (540)-662-1212 for a free, comparative quote from a range of carriers, and see how much money we can save you.