Phoenix Insurance Group is proud to serve Central and North New Jersey’s insurance and bond needs. Whether you’re a business offering surety bonds or you find yourself in need of court bonds for various legal actions, our team can help you secure the bonds you need in a cost effective and practical manner.

These are a few typical ways that businesses use bonds.

Contract Bonds

Essentially, contract bonds exist as assurance that your business will meet the terms of the contract or you will pay the bonded amount to the client. These types of bonds are quite common when it comes to construction work, government contracts, and can be requested by clients in almost any field.

It is up to you whether you are willing to offer this guarantee, but it can mean the difference between getting the contractor or not. There are three different types of contract bonds.

1. Bid Bonds – protects the project owner if the successful bidder refuses to enter the contract or provide the necessary bonds or security.
2. Performance Bonds – protects the project owner if contractors default on their obligations according to the bonded contract.
3. Payment Bonds – ensures that the contractor is responsible for and will pay subcontractor labor, materials, etc. that are associated with the project.

Fidelity Bonds

Fidelity bonds offer businesses protection from the consequences of fraudulent or dishonest acts committed by their employees. This can include monetary issues, such as theft or embezzlement, but can also extend to physical damage caused by employees as well.

As an employer, you may choose to purchase a blanket fidelity bond that extends to the actions of all your employees, or you may choose a tailored fidelity bond that covers one or more specific employee.

Court Bonds

Sometimes, these bonds are referred to as judicial bonds. They are often required to guarantee protection from possible losses in court proceedings. The most common types of court bonds include:

• Cost Bonds – Guarantee that costs associated with appealing lower court decisions will be paid
• Indemnity to Sheriff Bonds – Protect sheriffs from suits filed by those whose property has been seized
• Plaintiff’s Bonds – Provides protections for defendants that damages will be made, by the plaintiff, if the court rules in favor of the defendant
• Attachment Bonds – Guarantees that the plaintiff will pay all legal costs and/or damages sustained, if the court decides the Attachment was unnecessary
• Replevin Bonds – Guarantees that seized properties will not be sold, disposed of, or changed until a judgment  is rendered

Other court bonds that are fairly common,include:

• Administrator Bonds
• Executor Bonds
• Conservator Bonds
• Guardianship Bonds

Commercial Bonds

These bonds are often required by federal, state, or local governments. They may require certain conditions or ensure certain standards. The following bonds are some of the more common commercial bonds.

• License and Permit Bonds
• Performance and Payment Bonds
• Tax Bonds
• Warehouse Bonds
• Customs Bonds

Call 908-879-6500 today to learn how we can help you with all your bond, insurance, and risk mitigation needs.