August 21, 2019
Bonds come in a variety of shapes and sizes, depending on the situation. In a nutshell, bonds provide legal assurance to parties such as government agencies, business owners and general contractors (also known as obligees) that a person or a company (also known as the principal party) will perform to the terms specified in a contract. The surety company, or insurer, provides the bond.
If the terms are not upheld-if the principal does not perform the duties as delineated in the contract-the insurer steps in to provide a remedy. The remedy might be paying for losses incurred by the obligee, hiring a new principal or completing the duties themselves.
At Valeri, we service clients who require bonds in a number of industries. The type of bond we supply most often is a contract bond. This bond provides a guarantee that contract performance stipulations will be met, that the principal party will obey specific city ordinances, or a host of other legal situations.
Fiduciary bonds are another type that we tend to see: these bonds offer a guarantee that individuals in positions of trust will carry out duties in an honest manner. These bonds are often required by executors or administrators of a deceased person’s estate and trustees. Attorneys will contact the Valeri team members to provide a bond.
Law enforcement agencies can also request bonds. For instance, in cases of tenant eviction, a sheriff’s department can require a sheriff indemnity bond. This type of bond covers the deputy who goes to the property to ensure that a tenant has vacated. If that has not occurred, the indemnity bond guarantees that the property owner can dispose of the tenant’s possession-and it protects the sheriff’s deputy.
There really are bonds for every legal situation. Valeri is a full-service insurance agency. We provide contract bonds, court bonds, miscellaneous surety bonds, license and permit bonds. Most municipalities will require surety bonds of General Contractors as well as mechanical contractors such as electrical, HVAC and plumbing. These bonds guarantee that the contractor abides by all city ordinances. Elected officials can be required to purchase a public official bond. Even notaries in Wisconsin must have a notary bond.
While there are many different kinds of bonds, there is only one choice for all your insurance coverage needs: the experienced, dedicated Valeri Agency team. Having a local insurance specialist/agent who is available 24/7, who knows you personally and who takes the time to meet with you, makes all the difference. Contact us today. Because local matters.