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A fidelity bond or surety bond can help protect the interests of your growing business. At State Farm®, we combine the financial strength of our full service commercial Surety and Fidelity Bond Department along with more than 18,000 local agents to provide you and your business professional with superior service.
Why do I need a surety bond for my business?
Discover the ways you can protect yourself, your small business, and your employees with the help of State Farm.
License bonds guarantee the Principal will comply with applicable codes and regulations established by the Obligee (The Obligee is usually a government entity such as a City, Town, or State).
Example: Electrical contractors may be required to post a bond as part of their licensing requirements. The obligation of the bond may specify that the contractor will follow the electrical codes established in that city, town, or municipality.
A Public Official bond guarantees that elected or appointed officials will faithfully perform their duties. The bond amount, as well as duties, are usually specified by statute or ordinance.
A probate bond guarantees an honest accounting and faithful performance of duties by fiduciaries/trustees. These bonds are required by courts or statutes as estates of deceased persons, incompetent persons, and minors are set up and administered.
Other types of judicial bonds include:
Miscellaneous surety bonds include:
Contract bonds generally guarantee the performance of a written contract according to its terms and conditions.
Types of Contract Bonds include:
A bid bond guarantees that if a contractor is the low bidder on a project, he/she will enter into a contract and provide a performance bond.
A performance bond guarantees the contract will be completed according to its terms and conditions.
A payment bond guarantees payment of laborers, subcontractors, and material suppliers.
This is only a general description of coverages of the available types of insurance and is not a statement of contract. Details of coverage, limits or services may not be available for all businesses and vary in some states. All coverages are subject to the terms, provisions, exclusions and conditions in the policy itself and in any endorsements.
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