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What is bond insurance?
An issuer of a bond can purchase bond insurance to guarantee scheduled payments of interest and principal on the bond to its bondholders in case the issuer defaults. Once the issuer purchases bond insurance, its credit rating is replaced with the insurer’s credit rating. Premiums are a measure of the perceived risk of failure of the issuer and are paid to the insurer in either lump sums or installments.
What are the benefits of being bonded?
Being bonded gives issuers the ability to leverage business growth. With the increased stature of having the insurer’s credit rating, a business can feel safer in taking risks to improve and grow the business. This is especially true in the construction and financial industries.
A bonded business can obtain unbiased criticism from a credit professional and seek advice in underwriting projects.
Some bonds we handle include, but are not limited to, the following:
- Contract performance bonds
- Bid bonds
- Maintenance bonds
- Payment bonds
- Supply bonds
- License and permit bonds
- Miscellaneous bonds
Are you applying to operate a Medical Marijuana business in Oklahoma and need a bond?
The State of Oklahoma requires all applicants wishing to operate a Medical Marijuana business in the State of Oklahoma to post a $50,000 bond. Use this link to download a bond application. Medical Marijuana Bond Application When complete email the application to our office.
Get started today!
Thank you for your interest in FirstPoint Insurance Agency. We work hard to provide you with personal service and work with multiple A+ rated carriers to bring you the best coverage options. Feel free to call our office at 405-869-2330 to speak to an insurance professional or email your questions and an agent will reply promptly.
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