Surety Bond Products
The focus for Shorewest Surety Services, Inc. is and always has been surety.
A surety bond is a written instrument between three parties: principal, obligee, and surety. There are two major categories of surety bond products – Contract and Commercial.
The surety companies we represent combined in 2014 to write over 50% of the total surety premium written in the United States. Our licensed representatives, underwriters, and bond production associates are all seasoned industry veterans with significant surety experience. These dedicated professionals will work with you to understand your needs, and strive every day to fulfill those needs in the most timely, efficient and cost-effective manner possible given the existing conditions in the marketplace.
The most common forms of bonds are associated with the construction industry. The Federal Government and most states mandate that publicly funded projects over a threshold dollar value include some form of “guarantee” protecting the public’s interest that the selected contractor and their team of subs and suppliers will complete the project as specified – on time, on budget, without lien or litigation. In addition, many private owners also elect to protect their interest by requiring such a guarantee. The most common method of delivering such a guarantee is the “Contract Bond”.
The most common forms of Contract Bonds are Bid Bonds, Performance Bonds, and Payment Bonds. The bid bond guarantees that if the principal (contractor) is low bidder and awarded the job he/she will enter into a contract and provide the necessary Performance and Payment Bonds. Under the Performance bond the surety is obligated to the obligee to ensure performance of the contract in accordance with the contract terms and specifications. The Payment Bond guarantees that the payments due to qualified claimants in connection with work performed under the contract will be paid (generally this includes subcontractors and suppliers as well as other parties as required by statute or as included on the bond form).
Shorewest Surety Services, Inc. has access to the capacity to write bonds for contractors of any size. Our customer portfolio includes established general contractors as well as those in the major trades and suppliers.
Other miscellaneous bonds commonly written to support the construction industry include Wage & Welfare Bonds, License & Permit Bonds, Highway/Roadway Access Bonds, and various Preservation Bonds.
The major categories of commercial bonds include:
- License & Permit Bonds
- Court Bonds
- Fiduciary Bonds
- Public Official Bonds
- Customs Bonds
- Indemnity Bonds
Each category is discussed in detail below.
License and Permit Bonds
These bonds are required by the federal, state or local government as a condition to engage in a business activity or the granting of a permit to exercise a particular privilege, and guarantee compliance with statutes, ordinances and departmental rules. There are four general categories of License & Permit bonds – click through to this link for more details.
There are literally hundreds of bonds in this class – if the bond you require is not listed, just give us a call for more details.
- Alcohol, Tobacco, Firearms (ATF) Bond
- Auctioneers (Other than Livestock) Bond
- Collection Agency Bond
- Contractor License & Permit Bond (City & State, including the new City of Chicago Contractor License & Permit Bond)
- Contractors Tax Bond
- Defective or Lost Title – Motor Vehicle Bond
- Detective Agency Bond
- Employment Agency Bond
- Fuel Dealer Bond
- Fuel Tax Bond
- Grain Dealer/Warehouse Bond
- Highway & Street Permit Bond/Excess Weight Bond
- Hunting & Fishing License Dealer Bond
- Insurance Adjusters/Public Adjusters/Brokers Bond
- Manufactured Home Dealers (If Warranty Offered) Bond
- Manufactured Home Dealers (If No Warranty Offered) Bond
- Mortgage Broker Bond
- Mortgage Lender Bond
- Motor Vehicle Dealer Bond
- Nursing Home Patient Trust Bond
- Pawn Broker Bond
- Private Schools Bond
- Professional Fundraisers/Solicitors Bond
- Public Warehouse Bond
- Real Estate Broker Bond
- Sales and Use Tax Bond
- Toll Road and Turnpike Authority Bond
- Union Benefits Guarantee Bond
- Union Wage & Benefits Guarantee Bond (Wage and Welfare Bond)
- Utility Deposit Bond
All court bonds guarantee payment in actions at law either for costs and damages or for judgment. This broad category includes bonds for plaintiffs and defendants.
- Appeal Bond/Supersedas Bond
- Court Costs Bond
- Discharge Mechanics Lien (No Performance/Payment) Bond
- Eviction Bond
- Garnishment, both Plaintiff and Defendant Bond
- Indemnity to Sheriff Bond
- Injunction Bond
- Replevin Bond
- Attachment Bond, both Plaintiff and Defendant
These bonds are generally required by law or by order of a court for persons or businesses managing the estate or property of another. The surety guarantees the faithful performance of duties and compliance with orders of the court governing actions of the fiduciary.
- Administrator Bond
- Trustee Bond
- ERISA/401K Trustee Bond
- Executor Bond
- Guardian Bond
- Bankruptcy Bond
These bonds cover the official’s term of office and guarantee that the bonded official will faithfully perform the duties of their office.
- Sheriff’s Bond
- City and Town
- County Clerks
- Tax Collectors Bond
- Treasurer Bond
- Manager Bond
These bonds are required by law. The Custom Bond will take the form of either a single entry or continuous bond. The surety guarantees the principal will:
- Comply with applicable laws and regulations of the U.S. Custom Bond Service.
- Pay all duties, taxes, fees, charges or forfeitures.
- Redeliver any goods which Customs subsequently determines were illegally imported.
Principals under these bonds are typically importers or exporters of articles subject to import or other charges and taxes, Custom Brokers, or Proprietors of warehouses licensed by the U.S. Custom Service.
Bonds not mentioned above are required by law or regulation or between private parties to guarantee some type of contract, payment obligation or are required to facilitate business transactions.