Commercial surety bonds guarantee the performance of an obligation. They create a three-party relationship in which a surety guarantees to fulfill the obligation of a principal to an obligee if the principal is unable to or fails to do so.
If you’re acting as the executor or administrator of an estate, as someone’s guardian, or a trustee in bankruptcy, you might need a fiduciary bond to ensure you will perform the duties that are required of you in a will or court order, according to law. Executors and administrators are responsible for administering assets of deceased persons with and without wills. A guardian is a person acting on behalf of someone who has been declared incapable of managing his or her own affairs because of age, accident, or illness. As the trustee in a bankruptcy, you might be negotiating between a debtor and their creditors. The bond would guarantee that you adhered to bankruptcy laws while serving the interests of both the creditors and the debtor. The purpose of these bonds is to protect beneficiaries from losses that might arise from your actions.
Customs and Excise Bonds
If your business involves import, export, manufacturing, sales, or distribution of goods, you might need a customs or excise bond. Customs bonds guarantee payments of taxes and duties on goods brought into the country and ensure you adhere to all regulations governing clearance of goods. An excise bond is necessary if your business is required to have a license for spirits or tobacco. This type of bond guarantees you will pay your federal or provincial taxes and duties while complying with all legal requirements relating to your business.
License and Permit Bonds
Whether you’re in sales, service, manufacturing, or distribution, if your business involves some kind of risk to the public, you might need a license and permit bond. Bonds that ensure environmental quality, consumer protection, private driving or trade schools, contractors, or the sales of used vehicles all fall into this category. The purpose of these bonds is to protect the public from fraud or incompetence and guarantee your business follows all government regulations.
Lost Documents Bonds
If your business deals with investments, like savings bonds or stocks, you will likely need this kind of bond to protect you by replacing documents that are lost, destroyed or stolen. These bonds protect the obligee from having to pay twice when documents go missing. A bond of indemnity protects the issuer of any replacement document from having to pay twice if the lost documents are later found or returned.
Whatever type of commercial surety bonds your business requires, it is important to know your business is protected. When your customers know your work is guaranteed, you’ve got a competitive edge. Contact the experts at Lane’s Insurance to get your edge up on your competition today.