Brief Overview of Fidelity Bonds and Surety Bonds
Surety and fidelity bonds exist in order to insure that companies are protected against work projects that are not completed and employees that take advantage of businesses.
Fidelity Bonds
Fidelity bonds are essentially insurance policies that companies take out on employees who they consider to be high risk investments. This type of insurance enables the company to recover from losses should an employee embezzle funds or commit theft, larceny, or some other type of crime resulting in a monetary loss. Although this may sound like a company does not trust its employees, in actuality it is often used to hire employees that may not be considered at other places of business. This type of insurance gives these employees an opportunity to achieve a fresh start and an gives the company an incentive to hire high risk individuals, thus providing job opportunity and helping to quell unemployment. A fidelity bond can cover a business for up to $25,000.
Surety Bonds
This type of business insurance is often used by schools, government entities, and other organizations for a wide range of different projects. A surety bond consists of an agreement between the contractor, or principal party responsible for completing a project, the surety who is responsible for making sure that the principal follows through on their part of the bargain, and the obligee, or contractor, the person or organization that contracted the bond and for whom the service is being performed. If the contractor, or principal party, fails in their obligation, a surety bond guarantees that the person in ownership of the bond will be compensated. In this way they have insurance against an unforeseen event. A performance payment bond is a type of surety bond ensuring that private contractors complete public construction projects. These bonds are required by law on most construction projects.
Surety bonds and fidelity bonds are essential for making sure that projects are completed on schedule and that employers are entitled to compensation should their employees prove to be less than stellar workers. These bonds ensure that the public and private sectors run smoothly.
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Wharton Surety Consultants, LLC can provide surety bonds and fidelity bonds for your next project and is licensed in all 50 states. Visit their website to find out how they can help you at http://www.whartonsurety.com.
Angela Entzminger, the author of this article, is a freelance writer.
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Wharton Surety Consultants, LLC can provide<a href=”http://www.whartonsurety.com” target=”_blank”>Surety bonds</a>and fidelity bonds for your next project and is licensed in all 50 states.
Angela Entzminger, the author of this article, is a freelance writer.
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Surety bonds and fidelity bonds are essential for making sure that projects are completed on schedule and that employers are entitled to compensation should their employees prove to be less than stellar workers. These bonds ensure that the public and private sectors run smoothly.
For more information on fidelity and surety bonds visit http://www.whartonsurety.com.
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<a href=”http://www.whartonsurety.com” target=”_blank”>Surety bonds</a>and fidelity bonds are essential for making sure that projects are completed on schedule and that employers are entitled to compensation should their employees prove to be less than stellar workers. These bonds ensure that the public and private sectors run smoothly.
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