Protect Your Investment Property with Surety and Fidelity Bonds
All investment property owners must protect themselves financially to ensure their success. Bonding insurance can provide the protection you require, both in the forms of a surety bond and a fidelity bond. At Steven Graves Insurance in Dallas, TX, we offer both forms of bonding insurance.
Understanding Surety Bonds
Surety bonds are a requirement for a number of professionals, including average business owners, contractors, attorneys and notary publics, each for different reasons. For instance, business owners need a surety bond to guarantee payment of sales tax and utility bills, while contractors use it to guarantee their work. Investment property owners may need them for a number of reasons as well, such as building permits or miscellaneous bonds. There are several types of surety bonds to cover various elements of business.
- License and Permit Bonds – These bonds are for general business owners and contractors and cover items, such as sales tax, contractor licensing and building permits.
- Public Official Bonds – These bonds are typically held by notary publics, judges, tax collectors and other public positions. This bond ensures they will fulfill their duties.
- Probate and Court Bonds – This type of bond is required of attorneys and other court officials, protecting estates and the interests of those who need various court services.
- Miscellaneous Bonds – This type of bond covers anything the other bonds don’t, typically hazardous obligations.
- Contract Performance Bonds – These bonds are required of contractors and protect the consumer against failure to compete the contracted work.
Understanding Fidelity Bonds
Bonding insurance isn’t only to protect the consumer. A fidelity bond protects the employees of a business. There are two basic types of fidelity bonds you may purchase.
- Blanket Bonds – This type of fidelity bond protects all of a business’s employees, including new employees. It covers employee liability up to a given amount as described in the policy. These policies are typically used by large businesses, those with high turnover rates and organizations that utilize honorary positions.
- Schedule Bonds – These bonds are typically used by businesses where some employees hold a greater financial responsibility. It allows businesses to cover individual employees with varying amounts and limits liability to specific employees by name or position.
If you own investment property and are interested in bonding insurance in Dallas, TX, contact us. We can help you determine the type of bonding insurance and the coverage amounts you require.