Bond Insurance Lakeland FL
What is 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. It guarantees scheduled payments of interest and principal.
When the issuer purchases bond insurance, its credit rating is replaced with the insurer’s credit rating. Premiums are based on the the perceived risk of failure of the bond, and are paid in either lump sums or installments.
What are the benefits of being bonded?
Being bonded frees up issuers to leverage business growth; with the increased stature of having the insurer’s credit rating, a business can feel safer in taking risks to improve and grow the business. This is especially true in the construction and financial industries, where this kind of insurance is often required.
A bonded business can obtain unbiased criticism from a credit professional and seek advice in underwriting projects. Some of our surety insurance products include:
- Contract performance bonds
- Bid bonds
- Maintenance bonds
- Payment bonds
- Supply bonds
- License and permit bonds
- Miscellaneous bonds