505 N Sam Houston Pkwy E, Ste 450
Houston, TX 77060
Office: (832) 540-2283
inquiries@jtmultiservices.net
Bonds
Core Types of Bonds & What They Cover.
"Which type of bond do you need?"
What is an Insurance Bond (Surety Bond)?
Unlike traditional insurance that protects your business from unexpected accidents, a Surety Bond is a three-way agreement that guarantees your business will fulfill its contractual obligations and follow state regulations.
If your business fails to meet these obligations, the bond steps in to financially compensate the affected party.
License & Permit Bonds (Commercial Bonds)
Many business professionals are required by state or local governments to hold a bond before they can legally operate.
-
What they cover: These guarantee that your business follows all local laws, ethical codes, and tax regulations.
-
Common examples:
-
Notary Bonds: Protects the public against financial loss resulting from a notary public's official misconduct or administrative errors.
-
Auto Dealer Bonds: Guarantees a dealership transfers clean vehicle titles properly and pays state sales taxes.
-
Travel Agency Bonds: Protects consumers against fraud or sudden business insolvency, ensuring traveler funds are handled properly.
-
Contract & Construction Bonds
Essential for contractors bidding on public or private commercial projects.
-
What they cover: These guarantee that a construction project will be finished exactly as agreed upon in the contract.
-
The main types:
-
Bid Bonds: Guarantees that if a contractor wins a project bid, they will actually take the job and provide the required performance bond.
-
Performance Bonds: Protects the project owner from financial loss if the contractor fails to complete the construction work according to specifications.
-
Payment Bonds: Guarantees that the contractor will pay all their laborers, subcontractors, and material suppliers, preventing liens against the property.
-
Fidelity Bonds (Employee Dishonesty)
-
What they cover: This is the one type of bond that directly protects your business. It covers financial losses caused by the fraudulent or dishonest acts of your own employees.
-
What it protects against: Employee theft, embezzlement, forgery, or stealing cash and physical property from either your office or a client's property.
