Bonds

Fidelity Bond Insurance vs. Surety Bond Insurance: What is the Difference?

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If you run a business in or near Quakertown, PA, it’s important to understand the benefits of surety bond insurance and fidelity bond insurance. These types of coverage can help protect your business from financial risks while enabling growth and stability.

Fidelity Bond Insurance vs. Surety Bond Insurance

Fidelity bond insurance, often referred to as employee dishonesty insurance, provides protection against theft or fraudulent activities committed by employees. It encompasses the theft of money, securities, and other forms of property. Some policies also include coverage for fraud and forgery, offering comprehensive protection for your business.

Surety bond insurance, on the other hand, serves as a guarantee for clients or business partners. If you sign a contract to complete work by a specific deadline but fail to fulfill the terms or meet the deadline, surety bond insurance compensates the other party. In Quakertown, PA, construction companies working on federal contracts valued at over $150,000 are legally required to carry surety bond insurance. Additionally, other large clients may mandate this type of coverage as part of their agreements.

Contact R&R Insurance Group LLC for More Information

If you’re unsure about the type of bond insurance your business needs or want to explore your policy options, we’re here to help. At R&R Insurance Group LLC, we specialize in assisting business owners in finding the right insurance policies or bundles to meet their needs and budgets. We’ll guide you through your options, explain the advantages and limitations of different types of coverage, and work with you to ensure your business is fully protected and positioned for success.

Did You Just Get a New Bond? Don’t Neglect Insurance!

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R&R Insurance Group LLC is known in Quakertown, PA and the surrounding area for providing strong and suitable insurance policies of many types. Over the years, we’ve built a strong reputation and can help you find unique bond insurance protection that can improve your overall experience.

What is Bond Insurance?

Bond insurance or financial guarantee insurance is a type of coverage that protects you from default. It’s designed specifically to ensure that the principal gets paid when someone defaults on a bond. Typically, it’s something that’s designed to protect municipal and asset-backed security. 

So, it’s something that usually protects the lender. But is it a good thing for you as someone borrowing money or getting a bond? Absolutely! A high-quality bond insurance policy can provide a surprising array of different benefits to someone borrowing, including advantages like:

  • Avoiding Potential Damages: Great bond insurance can keep you from various types of damage.
  • Higher Bond Availability: Bond insurance makes it easier for lenders to provide great bonds.
  • Stronger Security: Insurance provides a more secure bond that may make it look better for your profile.
  • Credit Support: A bond insurance policy may make them easier to receive if you have low credit.

Make sure that you talk with your lender about this situation and find out what kind of bonds might appeal to you. In this way, you can get the unique experience that you deserve at a price you can afford. Just as importantly, it can ensure that your experience goes smoothly and efficiently for you.

Give Us a Call Today 

Our team at R&R Insurance Group LLC is more than happy to help you find bond insurance that meets your needs. It’s important for Quakertown, PA businesses and borrowers to understand their options and find a policy that makes the most sense. Thankfully, we’re more than capable of helping!

Three misconceptions out there about bonds insurance

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Bonds insurance is an important type of insurance that those involved with investing need to understand. At R&R Insurance Group LLC, we can provide bonds insurance that protect investments in Quakertown, PA. Unfortunately, bonds insurance is sometimes misunderstood.

The following are three common misconceptions out there about bonds insurance:

Bonds insurance is the same thing as a surety bond.

One of the most important things to understand is that bonds insurance and surety bonds are not the same thing. Bonds insurance is a type of insurance coverage that the issuer of a bond may purchase to improve the reliability of a bond investment. 

Bonds insurance can occasionally be referred to as financial guaranty insurance. 

Bonds insurance is purchased by bondholders.

Another common misunderstanding about bonds insurance is that bonds insurance policies are purchased by investors. However, investors are not the ones who buy bonds insurance. 

Bonds insurance is actually typically purchased by the issuers of bonds. Investors themselves cannot purchase bonds insurance to reduce the risk involved in their bond investments. If a bond issuer offers bonds insurance, this makes bond investments more attractive to investors and can improve the credit rating of the bonds in question. 

Bonds insurance is only seen with asset-backed securities.

Bonds insurance is commonly associated with asset-backed securities. However, asset-backed securities are not the only type of investment that bonds insurance can be used with.

Companies that issue bonds might also use bonds insurance to make municipal bonds investments more risk-free and attractive to bond investors. 

Are you interested in bonds insurance?

You can contact us at R&R Insurance Group LLC for a quote on bonds insurance in Quakertown, PA.