What is bond insurance?
An issuer of a bond can purchase bond insurance to guarantee scheduled payments of interest and principal on the bond to its bondholders in case the issuer defaults. Once the issuer purchases bond insurance, its credit rating is replaced with the insurer’s credit rating. Premiums are a measure of the perceived risk of failure of the issuer and are paid to the insurer in either lump sums or installments.
What are the benefits of being bonded?
Being bonded gives issuers the ability to leverage business growth. With the increased stature of having the insurer’s credit rating, a business can feel safer in taking risks to improve and grow the business. This is especially true in the construction and financial industries.
A bonded business can obtain unbiased criticism from a credit professional and seek advice in underwriting projects.
Some bonds we handle include, but are not limited to, the following:
- Contract performance bonds
- Bid bonds
- Maintenance bonds
- Payment bonds
- Supply bonds
- License and permit bonds
- Miscellaneous bonds
Get started today!
Contact us today, and we can answer any questions you have about bond insurance.
Thank you for interest in Sullivan Insurance Agency. We work with multiple A+ carriers to find you the right policy to fit your needs and budget. Please feel free to call our office at 800-716-0470 or email your questions and an insurance agent will reply promptly.
Insuring: Marysville, Plain City, Bellefontaine, Richwood, Hilliard, Dublin, Columbus, Lakeview, Marion, Raymond, and Ostrander, Ohio