Bonds can benefit your business and help you build trust with your clients. If your North Carolina business needs bonds, we’re here to help. At Vic Fisher Insurance, we can assist you in obtaining the bonds that are right for your business. Give us a call today or request a quote online to get started.
What Are Bonds?
Businesses may need two common types of bonds: surety bonds and fidelity bonds. Surety bonds provide assurances that you will fulfill your contract or follow applicable regulations, while fidelity bonds insure against your workers’ dishonest acts.
Fidelity bonds are a type of business insurance that may financially protect against specific dishonest acts. Two kinds of fidelity bonds include the following:
- First-party fidelity bonds may cover acts of employee dishonesty (e.g., fraud, forgery or theft).
- Third-party fidelity bonds may provide coverage for dishonest acts by individuals working for your business on a contract basis.
Surety bonds are an agreement among three parties:
- The principal is the party that buys the surety bond.
- The obligee is a private or governmental party that requires the principal to secure a bond.
- The surety is the entity, such as an insurance company, that underwrites the surety bond.
The obligee may file a claim against the bond if a principal doesn’t adhere to the surety bond’s terms. Then, if the situation cannot be remedied with the principal, the surety may provide financial compensation to the obligee. If that occurs, the surety will typically seek reimbursement from the principal for that payment.
Contact Us Today
The team at Vic Fisher Insurance can help you get the bonds your business needs. Contact us for more information or to discuss what may be best for your business.