Bonds in Rocky Point, NY

Businesses must often secure and maintain robust loss control measures to mitigate financial risks. Bonds can form a valuable pillar of these efforts, potentially establishing crucial protection from fiscal and reputational consequences in the wake of unexpected mishaps. However, while often advisable, bonds can be a complicated and even confusing subject. With this in mind, the team at Metro Agency is happy to assist with guidance.  

What Are Bonds? 

Bonds are financial instruments often sold by insurance companies and purchased by businesses. Bonds may be available in many forms but generally share the same primary purpose of protecting the financial interests of parties entering into business agreements. These loss control tools may be essential for many companies, as they can reassure clients or customers who are concerned about a business’s ability to deliver services as promised. In many cases, bonds may be required to be eligible for certain jobs and prospects. 

What Bonds Do I Need? 

There are many types of bonds, but surety and fidelity bonds are among the most common and may be able to assist many businesses in the following ways: 

• Surety bonds may have many subtypes, including commercial, performance, and court bonds. They generally establish a legal agreement between three parties: the principal, the obligee and the surety. The principal, such as a business or contractor, purchases surety bonds from the surety, such as an insurance company, to reassure the obligee, such as a client. Should the principal renege on their responsibilities, the bonds can compensate the obligee without a need for lawsuits. 

• Fidelity bonds, also known as honesty bonds, can provide financial protection for businesses and clients from potential fraudulent, criminal or dishonest acts. For example, if a locksmithing company dispatches employees to a business client’s premises, who then commit burglary or damage property, fidelity bonds can compensate the client. Depending on the details of fidelity bonds, they may offer financial protection for acts committed by both employees and contract workers. 

Learn More 

At Metro Agency, we proudly serve businesses, families and individuals in Rocky Point and throughout the area. Our team of knowledgeable professionals is committed to helping clients understand and address their bond-related needs. Contact us today to get started.