Does anyone know what Bonding Insurance is???PLEASE HELP =)?

Question

medical related....

Answer 1

Bonding insurance is used to protect clients of certain professional services from loss. The intent is that they be able to trust these services with their property or money. Someone who has bought this insurance is said to be "bonded".

Answer 2

A bond is a form of guarantee.  For example, when a person accused of crime is released, he has to give a bond as security that he will appear for trial.  Typically, a bonding company will agree to pay a certain sum of money if the person does not show up.  It charges the defendant a non-refundable fee (typically 8-10%) for this service.  If the defendant does not appear, the bonding company forfeits the money to the court, but then it will go after the defendant, and anyone who guaranteed payment of the bond, to collect its money.

Another example of a bond is one that is required of a notary or other public official.  If the notary acts improperly (e.g. deliberately allows someone to forge a signature to a document and notarizes it), the person who is harmed can recover against the bond.  The notary will be required to pay the money back to the bonding company.  The bond is for the protection of the public.  It is not insurance for the notary, because he has to pay the money back if the bonding company incurs a loss.

Answer 3

Your question is a little vague.... and it would help if we could see your insurance/bond requirements - but that's not too feasible.

First off, a bond is NOT insurance.  You can normally acquire a bond from a local independent insurance agent, however. Just check your local phone book for independent insurance agents that may specialize in the bonding market.

A surety bond is a contract among at least 3 parties:

- The principal - the primary party who will be performing a contractual obligation

- The obligee - the party who is the recipient of the obligation, and

- The surety - who ensures that the principal's obligations will be performed.  

Through this agreement, the surety agrees to uphold - for the benefit of the obligee - the contractual promises (obligations) made by the principal if the principal fails to uphold its promises to the obligee. The contract is formed so as to induce the obligee to contract with the principal, i.e., to demonstrate the credibility of the principal and guarantee performance and completion per the terms of the agreement.

There are two main categories of bond types: contract bonds and commercial bonds. Contract bonds guarantee a specific contract. Examples include performance, bid, supply, maintenance and subdivision bonds. Commercial bonds guarantee per the terms of the bond form. Examples include license & permit, union bonds, etc.

Surety bonds are also used in other situations, for example, to secure the proper performance of fiduciary duties by persons in positions of private or public trust.

Good luck and I hope this helps!