Surety Bonds From a Massachusetts Based Insurance Specialist

Coonan Insurance Agency, Inc. can help you find affordable, quality Surety Bonds with ease!

We offer Surety Bonds in Massachusetts, Maine, New Hampshire, Rhode Island, Maine, New York and Florida.

Please ask one of our agents how we can provide you with insurance across multiple states.

What are surety bonds?

When one party in a contract is heavily reliant on the performance of the other, the dependent party might want a way of ensuring that the work is done as contracted. Surety bonds offer one way of helping Massachusetts businesses ensure contracts are adhered to.

The failure to fulfill contractual commitments can lead to significant monetary losses for one party. Surety bonds may offer the affected party with financial protection in cases of failure.

Which businesses typically obtain surety bond insurance?

Surety bond insurance is used for a variety of contracts that Massachusetts businesses and individuals enter into. Car dealers, contractors, custodians, fiduciaries and others may need a bond.

Because a guaranteed is needed in many different contractual situations. Insurance companies offer a few different types of surety bond insurance. An insurance agent specializing in these bonds can help find the right type of bond for a particular situation.

Quotes Available in MA, RI, CT, NH, ME, NY and FL

Surety Bonds Massachusetts

What surety bond insurance do contractors need?

In construction, surety bond insurance is often used to protect against a contractor failing to complete a major project. A bond might offer financial security to the client if the contractor doesn’t finish the job. A few different types of bonds might be required throughout the progression of a construction project:

  • Bid Bond: May guarantee that if a contractor’s bid is selected, they’ll honor their commitment to the project.
  • Performance Bond: May guarantee that the contractor will finish the project as the project’s contract stipulates.
  • Payment Bond: May guarantee that the contractor will pay all due wages to their employees and subcontractors.
  • Maintenance Bond: May guarantee that any defects identified post-completion will be addressed by the contractor. 
Surety Bonds Massachusetts

What surety bond do auto dealers need?

Massachusetts state law generally requires auto dealers to have an auto dealer bond in the amount of at least $25,000. This is normally a prerequisite to getting an auto dealer license in the state.

An auto dealer bond’s main purpose is to protect customers from potentially fraudulent activity. A fraudulent transaction could be financially devastating to customers, given the prices of vehicles.

An insurance agent specializing in these bonds can help auto dealers and others find the bond type that they’re required to carry.

What kind of surety bond do fiduciaries need?

Individuals usually only need a bond if they have a legal duty to another entity. This is primarily a fiduciary responsibility to a financial client or person for whom finances are managed. These specialized bonds are sometimes referred to as probate bonds, and individuals might need several different types:

  • Executor Bond: Might ensure the efficient handling of an estate of a deceased individual who had a will.
  • Administrator Bond: Might ensure the effective management of a deceased’s assets if no will was present.
  • Guardianship Bond: Might ensure the correct administration of assets belonging to a disabled adult or a minor.
  • Conservatorship Bonds: Might ensure the accurate handling of an estate owned by a ward.
Surety Bonds Massachusetts

Who are the entities involved in a surety bond?

There are usually three distinct stakeholders in a surety bond. These are:

  • Surety: Generally the one offering financial redress (i.e. insurance company).
  • Obligor: Generally the one with an obligation to meet (i.e. contractor, car dealer, fiduciary).
  • Obligee: Generally the beneficiary that’d be paid by the bond (e.g. customer, ward)

In covered situations where the obligor doesn’t meet their contractual commitments, the surety compensates the obligee.

How much does a surety bond cost?

The price of a surety bond varies, depending on the type of bond, bond amount, and other risk factors. An independent insurance agent can help compare bond prices from what several insurance companies are offering.

Coonan Insurance Agency

How can entities or individuals in Massachusetts, and other states, acquire surety bonds?

Although surety bonds aren’t the same as standard insurance policies, bonds are typically issued by insurance companies. Contact us, at Coonan Insurance Agency to find a bond that’ll meet your needs.

Get a Quote!

Submit your information and one our friendly agents will get back with you shortly.