BOND INSURANCE

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.

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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).

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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.

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We specialize in providing small and large businesses with the following types of bonds:

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• ​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.