Your Austin Bond Insurance Provider
Ed Weeren Insurance provides expert bond insurance to the Austin area. There are various types of bonds issued by insurance/bond companies. The general categories of bonds available is as follows:
This is a situation where one party, for example, is hired to build a building for another. The one for whom the building is being built may want some type of guarantee from the builder that the project will be completed as intended and for the amount specified in the contract. If the builder fails to comply with the terms of the construction project, the surety will step in to provide the guarantee of the completed project. Bonds of this type are called construction bonds, but this is not the only use for a surety bond. Bonds may also, for example, be required by a purchaser of a machine from a manufacturer to guarantee the completion of the purchasing contract.
Another reason for a party to require a surety bond of another is to help qualify the one who will do the work or provide the service. To obtain a surety bond for a project, the builder, manufacturer or one to provide the service must complete an in depth qualification process.
There are many names to describe these bonds such as: litigant’s bonds, court bonds, plaintiff’s bonds, defendant’s bonds, etc. Generally, a litigant is required to post a bond when the court permits the litigant a special right or remedy, which is usually financially detrimental to the opposing party in advance of a final court decision. In certain conditions, the law may permit a plaintiff to take the defendant’s property or tie up a bank account before the lawsuit goes to trial. Court bonds are designed to provide security for payment in the event the final decision is averse to the litigant who was given the “temporary” remedy, pending final judgement.
A fiduciary is a person, who under the jurisdiction and supervision of a court, administers the property of another held in trust. A fiduciary is generally required by law to provide a bond for faithful performance of duties and for compliance with the orders of the court of jurisdiction. A fiduciary bond is written for an indefinite period, i.e. for such time as will be required to completely administer and account for an estate.
Several specific types of situations which may require this type of bond are: in the case of guardianship, a minor’s estate, a decedent’s estate, an incompetent’s estate, a trustee, etc.
License and Permit Bonds
Most license and permit bonds are required by governmental units in connection with licenses or permits to do business. There are many types of situations where these bonds are required, but usually they will contain some or all of the same four ingredients: compliance, public safety, public/consumer protection, and financial guarantee.
Public Official Bonds
The true public official is one, who is accountable to the public, not a supervisor, and who holds a portion of understanding and independence through election or appointment and required to take a public oath. The bond guarantees the faithful performance of official duties as prescribed by law.
Most bonds are simple and easy to issue by the bond company. An application is required and usually a document describing the need for the bond.
Work with a Knowledgeable Austin Bond Insurance Agent
Ed Weeran Insurance in Austin, TX has been around since 1899 and has a strong history of offering affordable bond insurance to its customers. When you’re looking for a reputable and trustworthy insurance company, look no further. Give us a call at 512-454-5266.