BondsSurety Bonds

Mallory-Tate Insurance Services provides surety bonds by working with commercial banks, savings and loans associations, insurance companies, and credit unions to get your business the bonds necessary, quickly and hassle-free.

There are several categories, sub-categories, and sub-sub-categories. Determining if and what type you or your company needs can be confusing and time-consuming. A Mallory-Tate agent is available to answer any questions you might have.

An Overview of Bonds

There are two primary types of Surety Bonds: Contract and Commercial. A Contract Bond, sometimes called a Construction Bond, ensures the completion of a contract in the event of a contractor default. A Commercial Bond, also referred to as a “Non-Contract Bond,” includes License and Permit Bonds and Court Bonds.

Contract Bonds

Used by investors in construction projects, a Contract Bond is obtained to protect these investors in the event of non-completion of the bonded project. Covered events can include: an adverse incident that causes disruptions, failure to complete the project due to insolvency of the builder, or failure to meet contract specifications. There are four types of Contract Bonds:

  • Bid Bond: Ensures the bidder on a contract will enter into the contract and furnish the required payment and performance bonds if awarded the contract.
  • Payment Bond: Ensures suppliers and subcontractors are paid for work performed under the contract.
  • Performance Bond: Ensures the contract will be completed in accordance with the terms and conditions of the contract.
  • Ancillary Bond: Ensures requirements integral to the contract, but not directly performance related, are performed.

Commercial Bonds

A Commercial Bond is not related to legal issues, construction projects, or other contracted work. Commercial bonds can also be broken down into subcategories:

  • License and Permit Bonds: sometimes referred to solely as “license bonds” or “permit bonds,” are a specific type of commercial bond required by government agencies. Business owners in certain industries must purchase these bonds before they can be legally licensed to do business.
  • Court Bond: like contract bonds, court bonds encompass a wide array of specific bond types. Court bonds are used for various court proceedings, and fall under one of two categories: Judicial Bonds and Fiduciary/Probate Bonds.

Other types of available surety bond coverage include:

  • Fidelity Bonds
  • Financial Institution Bonds
  • D&O Coverage

Contact Mallory-Tate Insurance for more information and to request a quote.