BONDS

When entering into a construction contract, often times the primary concern is whether or not the contractor is competent and capable of doing the work. However, knowing the complete financial history of the contractor being hired is not an option. If problems arise, it is important to know that damages can still be collected. An award for breach of contract does little good if the contractor has no assets to satisfy the claim. A bond can provide financial assurance.

Protection provided by a bond is not insurance. Coverage under an insurance policy involves a two-party agreement whereas in a bond, the person who pays the premium, known as a principal, is bonded for an action by a surety for the benefit of a third party commonly called a beneficiary. Bonds are distinguished between Surety bonds, which guarantee the performance of a contract, or Fidelity bonds, which protect against the dishonesty of employees.

Contract Performance and Payment Surety Bonds guarantee performance of all terms and conditions of a specific contract, and/or payment of all labor and materials provided to complete the contract, up to the amount of the bond. All Lines Insurance utilizes CBIC because CBIC now serves over 30,000 contractors and 3,000 insurance agents and brokers nationwide. CBIC is a complete facility for contract, bid, performance and payment bonds up to $10,000,000 single and $15,000,000 aggregate with higher limits available on an individual basis. The company is U.S. Treasury listed and Rated "A" (Excellent) by the A.M. Best. CBIC has a variety of contract surety programs to choose from, Under 50k and Under 200k Performance Bonds Made Easy Programs CBIC also has a Standard Market Program for performance bonds over $100,000 

Need more information about bonds? Contact us today!

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