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Bond Insurance

bond
Bond insurance (also known as "financial guaranty insurance") is a type of insurance whereby an insurance company guarantees scheduled payments of interest and principal on a bond or other security in the event of a payment default by the issuer of the bond or security. As compensation for its insurance, the insurer is paid a premium (as a lump sum or in installments) by the issuer or owner of the security to be insured.
Bond insurance is a form of "credit enhancement" that generally results in the rating of the insured security being the higher of (i) the claims-paying rating of the insurer and (ii) the rating the bond would have without insurance (also known as the “underlying” or “shadow” rating).
The premium requested for insurance on a bond is a measure of the perceived risk of failure of the issuer. It can also be a function of the interest savings realized by an issuer from employing bond insurance or the increased value of the security realized by an owner who purchased bond insurance.
We specialize in providing small and large businesses with the following types of bonds:

  • Contract Bond - guarantees that an entity awarded a contract will meet its obligations under that contract. Included in this group are bid bonds, performance bonds, payment bonds, maintenance bonds and supply bonds.
  • Subdivision Bonds - guarantee that developers will make certain "off site" or "public" land improvements in accordance with state, county or municipal specifications.
  • Commercial Surety Bond - can guarantee a variety of business obligations which require surety bonds. Commercial Surety Bonds include all non-contract surety bonds, including numerous types of license and permit, miscellaneous and court bonds.
  • License & Permit Bonds - guarantee that individuals granted a license or permit to operate a business or to exercise a privilege will meet the obligations under that license or permit.
  • Court Bond - guarantees that an individual will comply with the terms of the court. This includes probate and fiduciary bonds, & immigration bonds.

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