A surety bond is a three-party written agreement that guarantees the fulfillment of a legal obligation. In a bond, one party (the surety) obligates itself to a second party (the obligee or owner) to answer for the default of a third party (the principal). There are two categories of surety bonds:
Contract Surety Bonds
Contract Surety Bonds provide financial security and construction assurance on building and construction projects by assuring the project owner (obligee) that the contractor (principal) will perform the work and pay certain subcontractors, laborers and material suppliers.
Commercial Surety Bonds
Commercial Surety Bonds guarantee performance by the principal of the obligation or undertaking described in the bond
A bond is not an insurance policy. An insurance policy assumes that there will be a loss, so the premium for an insurance policy is calculated to cover losses that may occur. A bond, on the other hand, is an extension of credit, with the assumption that there will be no loss. The bond premium paid to the surety covers only the underwriting expenses of the surety company. When losses occur, they have a significant impact on the surety company’s financial results.
A surety company may request collateral to reduce the risk when issuing a bond. Collateral is sometimes required for high risk principals or unusual obligations. There are many forms in which collateral may be provided, including cashier’s checks, certificates of deposit, or irrevocable letters of credit. After all obligations of a bond have been met, and the obligee releases the surety company from their obligation under the bond, collateral is then returned to the principal.
Let AMIS Assist You With Your Next Bond
The AMIS Bond Program manager, Karen Metcalf, is an experienced broker who has been in the insurance business for more than 30 years. Karen is committed to providing the best service when it comes to writing your bonds. She has a wealth of talent and products that are hard to match in the industry. Give Karen an opportunity to assist you with your next bond!
Designed for:
- Court Bonds
- Contract Bonds
- License & Permit Bonds
- Miscellaneous Bonds
- Subdivision Bonds
- Judicial and Probate Bonds
- Federal (non-contract) Bonds
- Public Official Bonds
- Payments Bonds
- Performance Bonds
- Bid Bonds
Complete the Quick Quote application to get started. Additional information will be required.
To receive a quotation, please:
- complete the application on your computer
- print and sign it
- fax all materials to our office at:
(760) 471-9378 or (800) 573-8550 (Toll Free)
If you would just like a quick quote indication, you can fill out the online quick application form in the right column. Otherwise, use the full application form on the left.
Note: The above Quick App is an online form that will come directly to us when you click the SUBMIT button. |
To protect your privacy, please do not email the PDF forms to us. If you have a problem viewing the PDF forms, make sure you have the Adobe Reader - Version 7.0 or later.
NOTE: The application is not a finished Bond. All applications must be underwritten and a quotation will be issued subject to underwriting guidelines. The quotation does not bind coverage.
QUESTIONS: |
Please contact Karen Metcalf at AMIS/Alliance Marketing & Insurance Services for additional information or applications. Call 760-471-7116 or 800-843-8550, or click the email button. |
