What are Bonds and why do you need them?
A Bond is a guarantee between three parties. The three parties to a surety bond are:
The Principal – is the one who is being required to obtain the bond.
The Obligee – is the one requesting the bond for financial security.
The Surety Company – guarantees the Obligee that they will pay if there is a claim.

How does a bond work?
The Principal and the Surety company stand “jointly and severally” (both 100% responsible) to meet the obligation of the bond. The Principal and Surety are obligated to the Obligee. It is the Obligee, and most cases the general public who is protected and has the ability to claim on the bond. It’s the Principals responsibility to pay all obligations that arise from their operations. If the Principal defaults on a claim, the Surety is obligated to pay on their behalf. They surety will then enforce the indemnity agreement to recoup their loss from the Principal.

What insurance do you offer?
Smith Insurance & Bonds offers a wide variety of insurance products for the construction industry and beyond including general liability, workers compensation, equipment and auto coverage. In addition, we also provide our business owner clients with their personal home owners, auto and personal umbrella as well.

What forms are required for you to be insured by Smith Insurance & Bonds?
We have a Quick Insurance Questionare form that can be downloaded on our Insurance web-page.

How do we help Professional Agents?
Smith Insurance & Bond has strong relationships with insurance agencies who find obtaining surety bonds for their clients cumbersome and unproductive. They stick to what they know, insurance. We can act as your backroom surety office or we can work directly with your client to obtain surety bonds. Either way, we work on a generous commission split.

Our Resources
Resources are key to any viable business. As you know, the financials of the contractor is the first step in obtaining surety credit. In addition to our deep array of surety company relationships, Smith Insurance & Bonds has a group of construction oriented CPA’s ready to refer to start the process of properly organizing your financial information.