Most of the time when people talk about bonds, thoughts turn to forms of financial investment, like stocks. But there’s another kind of bond that pertains not to investment, but to safety. A surety bond, as this type of insurance is called, is a form of financial security that is designed to pay out in the event that something goes wrong with some kind of service or financial agreement, and a loss is incurred. There are a few ways in which a surety bond can be used to protect yourself.
This type of surety bond is a form of financial protection that a business owner can take to provide some security against employees or other businesses that you work with. It’s specifically designed to give coverage to a business in the event of some fraudulent act, usually involving money, securities, or other company assets. The specific type of fraud is related to a deliberate intent to cause financial loss to the company, for example, deliberate misreporting of spending on an expense account in order to secure money from the company.
A title bond is a form of protection that you might want in the event that there is a problem with determining ownership of something, such as a vehicle. In most cases, when you buy a car, you are automatically listed as the owner of the vehicle for any number of business or registration purposes.
However, if you created your own custom made vehicle, you were never issued an official title bond, so you’ll likely want to secure one for official ownership purposes. You may have had your title bond damaged, lost or destroyed in some mishap such as a flood or fire in your home. Or you may have purchased a vehicle but never received a title bond in the first place, which may often be the case with informal used car purchases outside of a standard, licensed, used car dealership.
Surety bonds serve a variety of different purposes depending on your needs. Amistad offers a range of different Raleigh surety bonds that can address a range of financial requirements and protection. Contact us for more information.