Small Contractors Surety Bonds
Those small contractors that are new to the business may discover that many insurance companies will be hesitant to provide bond coverage for them. Nonetheless, there are certain programs that deal with new contractors that have below $500,000 in yearly income.
These types of bond programs are provided for artisan contractors and other small contractors starting out, with offered coverage for performance, payment and bid bonds.
Surety providers assess the individual contractor’s financial strength along with fiscal management. Following the successful completion of several jobs that are devoid of default, the contractor’s risk assessment gets better, allowing for further coverage opportunities, including general liability and commercial auto insurance.
Miscellaneous and Special Risks Surety Bonds
Specified kinds of surety bonds that are not easy to categorize are harder to place than the standard type. These are labeled miscellaneous bonds where a mandatory deposit of collateral is demanded upon issuance.
Due to the regularity of utilization, as well as the extent of premium quantity, lost instrument or lost security bonds are the most common in the miscellaneous class.
The following are other examples of miscellaneous bonds:
- Income tax bonds that guarantee owed IRS taxes will be paid
- Subdivision bonds that guarantee specific property improvements, like sidewalk and parking improvements will be made
- Bonds that guarantee product or service performance
- Other types of bonds, like patent infringement, blue-sky, self-insurance and other specialty bonds that need individualized determination for underwriting.
For more information on surety bonds, contact an experienced independent insurance agency that deals in the specialty.
PRIME Insurance is a three-generation family-run independent agency. We’re proud partners with many of the leading companies in the industry – big names such as ACE, AmTrust, ASI, ASSURANT, CHUBB, CNA, Employers, FOREMOST, Liberty Mutual, MetLife, PROGRESSIVE, Safeco, StillWater, Travelers, USLI, ZURICH and more. This gives us the ability to provide all forms of nationwide coverage and bonds at competitively lowest quotes. Visit us on our online insurance website or email us at PRIME [at] primeins [dot] com or call us at 732-886-5751 and HAVE A PRIME DAY™!
Summary: Certain types of bonds are not part of the general categorization. PRIME Insurance gives you a quick review on the topic.