AMERICA'S LEADING PROVIDER FOR SURETY BONDS
Enter the business name to obtain a quote:
Miscellaneous Bonds
Miscellaneous Bonds cover a wide array of not otherwise classified indemnity bonds. A few
examples include: Financial Guarantees, Utility Deposit, Patient Funds – Nursing Homes, Wage
& Welfare, and Workers’ Compensation.
Financial Guarantee bonds are a category of surety bonds that ensure the principal (bonded party) will make payment to the obligee (usually a government agency). The term “financial guarantee” is used by surety underwriters to assign additional risk to surety bonds that contain some form of payment obligation. It is important to note; however, that surety bonds guaranteeing principal and interest payments on a loan are a separate category known as “financial guaranty”. Most financial guarantee bonds are government required and serve as a prerequisite for engaging in certain business practices. For example, businesses seeking to sell lottery tickets will need to purchase a Lottery Bond to ensure that all fees associated with the sale of lottery tickets are paid in full to the obligee. Unlike most insurance products, surety bonds protect a third party known as an obligee. In the context of surety bonds with a financial guarantee, the obligee (individuals/entities who are due payment) is protected from late or missed payments. In addition, when the surety company suffers a loss due to the principal’s actions, the principal must repay the surety company any
losses and sometimes court costs and other fees.
losses and sometimes court costs and other fees.
As mentioned above, financial guarantee bonds cover a wide range of surety bond types. Essentially, if your customer needs a bond to ensure payments are made on a financial or tax obligation, then they most likely need a financial guarantee bond. Below are a few of the most common types of financial guarantee bonds:
● Lottery Bonds
● Sales and Use Tax Bonds
● Alcohol and Cigarette Tax Bonds
● Contractor Tax Bonds
● Travel Agency Bonds
● Freight Broker Bonds
● Utility Deposit Bonds
● Health Club Bonds
● Union Wage and Welfare Bonds
● Packers & Stockyards Bonds
● Agricultural Products Dealer Bonds
● Money Transmitter Bonds
● Payday/Title Lender Bonds
● Driver Training School Bonds
● Post-Secondary School Bonds
● Lottery Bonds
● Sales and Use Tax Bonds
● Alcohol and Cigarette Tax Bonds
● Contractor Tax Bonds
● Travel Agency Bonds
● Freight Broker Bonds
● Utility Deposit Bonds
● Health Club Bonds
● Union Wage and Welfare Bonds
● Packers & Stockyards Bonds
● Agricultural Products Dealer Bonds
● Money Transmitter Bonds
● Payday/Title Lender Bonds
● Driver Training School Bonds
● Post-Secondary School Bonds
A utility bond is a type of financial guarantee ensuring a person or organization will pay for utilities on time. Most utility companies require customers who are projected to use a large volume of utilities to be bonded before utility services are turned on. Unlike many other surety bonds that exist to protect consumers, utility bonds serve to protect utility companies by ensuring that the company receives payment.
Government rules and regulations require many businesses in many different industries to obtain license and permit bonds. Meanwhile, utility bonds are required by specific parties prior to performing tasks, such as turning on utilities. While general liability insurance is required of these companies, commercial insurance usually isn't.
Utility deposit bonds are typically required in situations where individuals or businesses are applying for new utility service accounts, such as water, gas, or electricity. Here are some common scenarios where utility deposit bonds may be needed:
● Residential Customers: New Utility Service
● Commercial Customers: Business Establishments
● Customers with Poor Credit History: Credit Risk
● Property Developers: New Developments
● Renters: Tenants
● Government Entities and Contractors: Public Projects
● High-Risk Accounts: Delinquent Accounts
Nursing Home Bonds:
Long-term care facilities like assisted living centers and nursing homes must obtain a nursing home bond. Also known as a patient trust bond or nursing facility resident trust fund bond, a nursing home bond offers financial protection for patients and their families. It guarantees that businesses abide by industry laws and regulations. It also ensures that businesses honestly administer patient trust funds. Your surety bond will outline your business’s obligations to your patients and the state or federal government.
If your business offers long-term care services, you may need this surety bond. Nursing homes, assisted living facilities, and at-home care businesses must post this bond to protect patients and their families. The bond ensures that you abide by industry and state laws and regulations and handle funds ethically and legally.
Laws concerning how these trust funds are held and distributed can vary by state. The surety bond keeps each facility in check, ensuring funds are monitored and distributed lawfully. If money is lost or stolen, the surety bond protects the victim – who may receive compensation for the amount lost.
Nursing home bonds are three-party agreements:
1. The obligee is the state or federal government that requires the surety bond.
2. The principal is the long-term care facility that must obtain the bond.
3. The surety is the financial institution that underwrites and issues the bond.
Nursing home bonds are three-party agreements:
1. The obligee is the state or federal government that requires the surety bond.
2. The principal is the long-term care facility that must obtain the bond.
3. The surety is the financial institution that underwrites and issues the bond.
Wage and Welfare Bonds :
Wage and Welfare bonds, sometimes called union or fringe benefit bonds, are surety bonds required of employers when hiring members of a union. Wage and welfare bonds protect members of a union from losses if their employer does not provide all agreed-upon compensation and benefits.
For example: Imagine a railway company that is looking to hire more signalmen. The workers the company wants to hire are all part of a union, which requires the railway company to purchase a Wage and Welfare bond before their members begin work. If the railway company fails to pay any wages or fringe benefits, the union members can file a claim against the company’s bond to recoup their losses.
For example: Imagine a railway company that is looking to hire more signalmen. The workers the company wants to hire are all part of a union, which requires the railway company to purchase a Wage and Welfare bond before their members begin work. If the railway company fails to pay any wages or fringe benefits, the union members can file a claim against the company’s bond to recoup their losses.
As mentioned above, employers that hire union members may need to purchase a Wage and Welfare bond. The decision of if and when to require a bond lies with individual unions, who are also able to dictate the bond’s terms and conditions.
Wage and Welfare Bonds :
A Workers Compensation bond is a type of surety bond required of employers that wish to enter into a self-insurance agreement with their state. In states where the option to self-insure the required worker's compensation coverage, a surety bond requirement may exist if that option is selected.
Workers compensation bonds are a type of financial guarantee surety bond. It provides a form of guarantee that any worker's compensation payments due employees will be paid. In a case where a payment is due but not paid by the employer, a claim may be placed on the surety bond. The surety would pay the amount due up to the bond amount. The surety would then attempt to collect the amount paid out on claim from the employer. The employer is ultimately financially responsible for any claims paid on the surety bond. There are also situations where an employer can opt to pay into a self-insurance fund. A workers compensation bond may be required in these situations as well to guarantee payments to the fund are made as agreed.
Typically, any employer wanting to enter into a self-insurance agreement with the state. Specific surety bond requirements vary by state, but all of them use a bonding requirement to preserve the integrity of the worker's compensation system. Failure to obtain a workers compensation bond can make it difficult to establish a business and impossible to run one legally, so it's important to secure a surety bond as soon as one becomes necessary.