Share:

Surety bonds can be confusing for those who have never had one before because they are complicated and work differently than most insurance policies. Zimmerman Insurance Agency provides these bonds in High Point, NC. The insurance service shares some basic information the average person should know before buying a surety bond in the state of North Carolina.

A Guide to Insurance Service & Surety Bonds

How They Work

insurance serviceSurety bonds work as an insurance policy for the obligee, which is the person or organization requiring the bond. It functions as a form of credit for the principal, or the party fulfilling the requirements of the bond. The insurance broker serves as the surety since they guarantee the principal will fulfill the obligation. Typically, the obligee is a government organization and the principal is expected to obtain and pay for the bond. The bond is designed to protect both the government and its citizens by promising the principal will pay any claims that arise in full.

What Bonds Are Required in North Carolina

There are three types of bonds required by the local government in North Carolina. License and permit bonds are required for contractors, mortgage brokers, car dealerships, and other similar organizations. Second, contractors working on public construction projects are required to take out contractor bonds. Third, court bonds are required for a wide range of reasons and there are many different types. For example, a fiduciary bond is a court bond required for those who wish to act as the executor of an estate.

Zimmerman Insurance Agency has been a part of the High Point community since 1963. They offer a comprehensive and dependable insurance service, from surety bonds to business and car coverage. Contact them at (336) 883-6512 to request a quote or talk with a friendly professional about finding the right policy to suit your needs. If it’s your first time taking out a bond, they will gladly and patiently walk you through the process to make it simple and stress-free!

tracking