Business Insurance Solutions

Surety Bonds

A surety bond is a type of financial guarantee that ensures a business or individual fulfills certain obligations, such as adhering to laws, completing contracts, or meeting financial responsibilities.

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What is a Surety Bond Insurance Policy?

Essentially, it’s a contract involving three parties, the Principal, the Obligee, and the Surety. If the principal doesn’t fulfill the obligation, the surety will cover the costs, but the principal is required to reimburse the surety.

  • Principal: The business or individual who needs the bond (typically the party required to perform a task or meet an obligation).
  • Obligee: The entity (usually a government agency or client) that requires the bond to ensure the principal fulfills their obligations.
  • Surety: The insurance company or bonding company that issues the bond and guarantees that the principal will meet their obligations. If the principal fails to do so, the surety will compensate the obligee, up to the bond amount.

Who Needs Surety Bonds?

Surety Bond | Business Insurance | CNS Insurance
  • Contractor License Bonds: Contractors often need surety bonds to guarantee they will follow construction codes, complete projects as promised, and pay subcontractors and suppliers.
  • Performance Bonds: Contractors are required to secure performance bonds to guarantee that a project will be completed according to the contract.
  • License and Permit Bonds: Many states, counties, and municipalities require businesses in certain industries (e.g., auto dealerships, mortgage brokers, and liquor retailers) to obtain a license bond before they can operate legally. These bonds ensure compliance with local laws and regulations.
  • Court Bonds: Individuals involved in legal matters (such as in probate cases, appeals, or guardianship situations) may need court bonds to guarantee that they will comply with court decisions.
  • Bid Bonds: When submitting bids for government contracts, businesses may be required to post bid bonds to guarantee they will enter into the contract if they win the bid.
  • Payment Bonds: These are often required in public construction projects to ensure subcontractors and suppliers are paid.
  • Fidelity Bonds: Some businesses, particularly those handling other people’s money (e.g., financial advisors, insurance agents, or real estate brokers), may need fidelity bonds to protect clients from losses due to employee fraud or dishonesty.
  • Tax and Compliance Bonds: Certain industries, such as tax preparers or import/export businesses, may be required to carry surety bonds to ensure they comply with tax laws, financial obligations, and regulatory requirements.
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Why do you need Surety Bond Insurance?

Surety bonds are vital for ensuring trust, compliance, and accountability in business transactions. They protect consumers, clients, and governments by guaranteeing that businesses fulfill their contractual and legal obligations. Acting as a financial safety net, surety bonds mitigate risks for clients or agencies if obligations are not met. Additionally, they are often legally required for businesses and contractors to operate or engage in government contracts.

Why are they needed?

  • Trust and Compliance: Surety bonds protect consumers, clients, and governments by ensuring businesses fulfill their contractual and legal obligations. They help maintain trust in business transactions, particularly in industries where non-compliance could result in financial harm or legal issues.
  • Risk Mitigation: They act as a safety net for clients or governmental agencies, providing financial protection if the principal fails to meet their obligations.
  • Legal and Licensing Requirements: Many businesses and contractors need surety bonds to operate legally or to participate in government contracts.
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Surety Bonds

Types of Surety Bonds

There are several types of surety bonds, and the specific type depends on the nature of the obligation.

Some Common Surety Bonds include:

  • Contract Bonds: Ensure the completion of construction or other contracts according to the agreed terms.
  • License and Permit Bonds: Required by government agencies to ensure businesses comply with local, state, and federal regulations.
  • Fidelity Bonds: Protect against employee dishonesty or theft.
  • Court Bonds: Required in legal proceedings to ensure compliance with court orders.
  • Commercial Bonds: Often required for businesses to ensure compliance with regulations, such as tax payments.
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Recommended and Required Minimum Coverages

Below are some of the minimum coverage requirements and recommendations, however, we recommend talking to one of our Commercial Insurance Specialists to get specific recommendations on the coverage you need based on what you are hauling.

Liability Coverage
1 K+

Auto Liability, also known as Bodily Injury Physical Damage (BIPD), depends on the overall gross-vehicle weight (GVW) when hauling.

Under 10,001 lbs GVW = $300,000 while over 10,001 lbs GVW = $750,000

1K-200K

Physical Damage Coverage

Physical Damage is not required for Commercial Vehicle Insurance, but we do recommend it. Coverage depends on what you are driving and can range from $1000 to $200K.

Cargo Coverage
1 K+

Cargo Coverage is required by law, however the amount of coverage depends on what your trucks are hauling. Call one of our Insurance Specialists for a recommendation on minimum cargo coverage.

Types of Business Policies

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Business Owners Policy (BOP)

A Business Owners Policy (BOP) is a comprehensive insurance package designed to protect small to medium-sized businesses from various risks. In Pennsylvania, business owners often choose a BOP as a cost-effective way to secure multiple coverages under one policy.

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Commercial Auto Insurance

As a Commercial Truck Insurance Provider, we offer coverage for Auto Haulers, Agricultural, Construction, Fleets, Fuel Haulers, Hazmat Carriers, Last-Mile and Mid-Mile Carriers, Long-Haul Truckers, Short-Haul Trucks, Towing Companies, and even new trucking companies.

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General Liability

General liability insurance is not a legal requirement in Pennsylvania, but it’s highly recommended for most businesses, and in some cases, contracts, leases, and industries may mandate it. Check with your insurance agent and review any applicable contracts.

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Types of Business Coverages

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General Liability

General liability insurance is not a legal requirement in Pennsylvania, but it’s highly recommended for most businesses, and in some cases, contracts, leases, and industries may mandate it. Check with your insurance agent and review any applicable contracts.

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Business Interruption Coverage

Running a business comes with its share of challenges, but when unforeseen events disrupt your operations, the financial impact can be overwhelming. Business Interruption Coverage ensures that your company can recover with confidence.

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Property Insurance Coverage

Business owners invest in physical assets, like buildings, equipment, and inventory, but when unexpected events cause damage or loss, the financial consequences can be significant. Property Insurance Coverage ensures those assets are protected.

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Customers Reviews

The guys over at CNS Insurance have the best prices compared to everyone else. Thank you guys.
Robert NievesOwner
Great insurance company! They are friendly and work with you in anyway and they get you on the road within hours.
Gustavo MendozaOwner
While shopping for insurance, Kiel was friendly & knowledgeable every step of the way in choosing a commercial insurance policy for my freight company. His communication was stellar and getting set up was easy as pie. Rates were awesome and competitive. Holly processes all of our COI requests and answers our questions in a very timely fashion. She is always helpful, prompt and attentive. We appreciate this in our industry more than words can describe because it’s so fast pace, having someone who can get you what you need expeditiously really matters. We are very pleased!
Marie AllenOwner
Miss Holly is an amazing account manager .. I just wanna say thank you for your help for the last 4yrs you guys been there for me .. I can name everybody from account to insurance and tax everyone they are very helpful team .. if you own a trucking company I will recommend CNS Insurance.
Truck AmarOwner
I was in a desperate time in my business and I really needed a breakthrough to continued to make money. Tony along with the team not only got me a great price to get my insurance they fought for me as if it was there own business. You do not find real people like that anymore and I will always remember the effort they put in to make sure I succeeded. If you want someone to get the job done these are the people you need guaranteed.
Kevin AntoineOwner
Excellent place, excellent staff, excellent communication, These guys help you out immediately when you call them. I work with Holly Turner númerouse of times and she”s been helpful and does everything immediately, I recommend CNS Insurance to anyone who needs help with insurance.
Myrian BedoyaOwner
Only started doing business with them six weeks ago but looking forward for us to have a great long term relationship. Thanks for all you do.
Miguel McKenzieOwner

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