Understanding Surety Bonds
A fidelity bond or surety bond can help protect the interests of your growing business. At Reno Insurance Agency, we combine the knowledge we have in the surety & fidelity bond industry with the financial strength of the bonding companies we represent to provide our clients with local superior service.
A Surety Bond involves three parties:
The Principal - the person or business with an obligation to perform
The Obligee - the person, company, or government unit requiring the guarantee
The Surety Company - who provides the bind to guarantee the principal fulfills their obligation
As long as the principal performs their obligation the surety company has no role. If the principal does not do what is required, the surety company has to meet the obligations. If this happens, the surety company is entitled to be reimbursed for losses and costs by the principal. Before a bond is written, the surety company may require the principal to provide an indemnity agreement from the business and also the personal indemnity of the principal.
Protect Yourself from Dishonest Employees:
A fidelity bond is a form of protection that covers policyholders for losses they incur as a result of fraudulent acts by specified individuals. It is usually meant to insure a business for losses caused by dishonest acts of its employees.
Protect your company from embezzlement or other drastic negative events! The Reno Insurance Agency encourages all companies to adopt hiring practices that reduce this risk. We also would like to sit with you to discuss if a fidelty bond or crime coverage would suit your company's needs.
Contact our office today to discuss your bond needs! (937) 223-5235