Surety bonding is a financial instrument utilized by institutions, lenders, and owners to obtain financial protection from default, faulty work, or theft by contractors and companies. Surety bonding is not insurance, but a financial transaction similar to placing credit on individuals and their company ownership. Bonded work carries more risk, therefore there is more importance placed on obtaining bonds.
OVD is a reliable advisor in providing effective surety bonds for our clients. We leverage the collective experience of our underwriting and brokerage teams to improve surety bonds across a wide range of industries and niches. OVD is here to help you navigate the process and find the right coverage for your specific needs to ensure that your projects are completed with quality and efficiency.”
Propeller will automate the entire surety purchase for instant bond issuing. Note: It is not intended to replace the current carrier relationships for contracting clients. It is an additional tool where our insureds can purchase ERISA, Notary, and Lost Title Bonds.
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A variety of parties can benefit from surety bonds, including but not limited to: contractors, business owners, individuals, government agencies, or financial institutions. Any party who may need to provide assurance to meet certain standards can benefit from surety bonds.
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What is a surety bond, and why do I need one?
A surety bond is a legally binding contract or another form of insurance that ensures obligations are met by another third party.
What types of surety bonds are available?
Surety bonds come in various types depending on your situation. Some common surety bonds are notary bonds, performance bonds, bid bonds, and payment bonds.
How do surety bonds differ from traditional insurance policies?
Surety bonds and insurance both serve as risk management tools although each have different purposes or characteristics. Surety bonds are designed to ensure performance or a specific obligation or contract where an insurance policy typically provides financial protection against unforeseen risks or losses.
What factors are considered when determining the cost of a surety bond?
Some key factors are the bond type, bond amount, contract terms, credit and various underwriting factors.
What happens if a claim is made against my surety bond?
If a claim is made it means the party who required the bond believes you have not fulfilled your obligations as outlined in the bond agreement. The claim process involves: 1. Claim Submission 2. Investigation 3. Evaluation 4. Resolution
How long does a surety bond remain in effect?
This depends on the type of surety bond and the terms outlined in the bond agreement.
Can I cancel my surety bond before its expiration date?
In most cases. There can be potential consequences upon cancellation depending on the type of bond and the contract terms.
What is the process for obtaining a surety bond?
The first step is to get in touch with an OVD advisor. Our team of experts can help you identify what type of bond you may need and walk you through quotes and the underwriting process until your surety bond application is complete.