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Bonds

Information about commercial surety bonds for you.

Bonds

Our bond carriers offer competitive rates and exceptional terms for all your bonding needs. There are many different types of surety bonds including, performance bonds, bid bonds and license bonds. We'll help guide you through your bonding needs.

Get a Bond Quote Here

Here are some bonding basics;

Surety Bonds - A surety bond is a contract issued among at least three parties, the principal, the obligee and the surety. In this contract the surety agrees to uphold for the benefit of the obligee the contractural obligations of the principal. If the principal fails to uphold its part of the contract then the surety will step in and guarantee performance and completion per the original agreement. The main two bond types are commercial bonds and contract bonds. Simply stated contract bonds guarantee a specific contract while commercial bonds guarantee the items stated in the bond form.

Examples of Contract Bonds;
- Performance Bonds - A performance bond is a surety bond issued by an insurance company to guarantee satisfactory completion of a project by a contractor. For example, a contractor may cause a performance bond to be issued in favor of a client for whom the contractor is constructing a building. If the contractor fails to construct the building according to the specifications laid out by the contract (most often due to the bankruptcy of the contractor), the client is guaranteed compensation for any monetary loss up to the amount of the performance bond. Performance bonds are commonly used in the development of real property, where an owner or investor may require the developer to assure that contractors or project managers procure such bonds in order to guarantee that the value of the work will not be lost in the case of an unfortunate event (such as insolvency of the contractor).
- Bid Bond - A bid bond is a surety bond filed when a bid for work is submitted. It guarantees that in the event the submitted bid is accepted the bidding party will sign the contract and furnish a performance bond as may be requested in the bid specifications.
- Supply Bond - A supply bond is a surety bond that provides a guarantee to a project owner that specified materials will be delivered by the supplier per the terms of a contract.
- Maintenance Bond - A maintenance bond is a surety bond provided by a contractor that protects the project owner against any defects in workmanship or materials for a specified period of time after the work has been completed.
Examples of Commercial Bonds;
- License and Permit Bonds - License and permit bonds are an instrument that is meant to protect the general public. They are usually required of many businesses by local, state or federal statutes. Some examples of license and permit bonds are;
  - Auto Dealer Bonds
  - Lender Bonds
  - City Business License Bonds
  - Construction License Bonds

Here's how we can help with all your commercial bonding needs;

Allow Mid-America Specialty Markets to place your bonds.
Our quick issue performance bonds are available up to a limit of $250,000 simply by completing a 3 page application. Acceptance is based upon your good credit.
Large performance bond limits are available through our standard bonding markets.
We understand bonding and the challenges that bonding can present.
We'll answer your questions about bonding.

Contact our office to see how we can help with your commercial bonding needs!

Contact us for all of your insurance needs:

MID-AMERICA SPECIALTY MARKETS
2718 Forum Blvd., Suite 3B, Columbia, MO 65203
Voice: (573) 447-4990
Fax: (573) 447-4998
email: info@midaminsurance.com

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