Bond Insurance – Cowan Insurance Agency, Inc.
We now have authority for immediate issuance of most probate, guardianship and license and permit bonds. Generally the bond can be issued during a brief interview over the phone. Contractors Bonds (bid and performance) up to $100,000 can also be issued instantaneously, and setting up an account for $200,000/$400,000 bonding capacity is quick and easy.
What’s the difference between bonding and liability insurance?
The difference between liability insurance and bond insurance is which party gets financially restored. Insurance restores the insured to where he or she was before the claim. A bond, on the other hand, returns the bonding company to its financial condition prior to the claim. The premiums paid for bonds are “service fees” charged to you for the use of the bonding company’s financial backing and guarantee. The bonding company views its underwriting as a form of credit. If the bonding company pays a claim made against you, it expects you to pay back to the bonding company the full amount it paid to the claimant. That’s why bonding companies focus on the applicant’s credit rating, while liability insurance companies look at the insured’s business services to determine their risk of being sued.
If you are interested in bond insurance, contact our office today and a representative will walk you though our bond insurance options. Contact Cowan Insurance Agency today by calling 978-372-1451 or complete our contact form.