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Bonds Insurance

from Rio Grande Insurance Services

Bonds Insurance


“Wait, so I’ve got general liability insurance and I’ve got Workers’ Compensation insurance and now you’re telling me I’m still not adequately covered?” 

It’s true. In the service industry things don’t always go as planned and the expectations you’ve laid out for the customer may not pan out to their satisfaction. Customers get angry and want some kind of financial compensation for their inconvenience. Being “bonded” enables you to compensate customers, while keeping you out of court for claims that you didn’t fulfill the terms of the contract. 

There are several types of bonds, and we, at Rio Grande, think it’s important that you know what’s available so you can understand exactly the coverage you need. 


SURETY BONDS A surety bond is one that you purchase from a surety as a contract between yourself, your customer and the surety (the person or organization issuing the bond). If for some reason you fail to meet the conditions of a contract, the fine that gets paid to your customer comes out of the bond, ultimately paid for by you. This is different from regular insurance whereby you are not expected to pay the insurance company back when you make a claim. Having such a bond to back you up assures clients they’re in good hands.

LICENSE & PERMIT BONDS These are required by government agencies at either the municipal, state or federal level. Valid for 1-5 years these bonds guarantee that your business will act according to all regulations and laws, protecting both the agency and its customers. If you’re a liquor store for example, or now in some states a marijuana dispensary, you would need this type of bond.  

CONTRACT BONDS Sometimes called a “performance” bond, these can be purchased by project and allow the parties to specify timelines and materials used. They protect the customer should a provider fail to provide the promised service, as in the case of a construction company going bankrupt before finishing a project. 

FIDELITY BONDS This bond protects you, the business owner from illegal acts such as theft or property damage committed by your employees. Many people prior to hiring a cleaning crew, for example, will want to know that the company is bonded so that if something goes missing from a client’s property they know they’re covered.

Rio Grande Insurance Services offers these types of bonds to suit your business and circumstance. We’ve helped companies from dozens of industries, including construction bonds - bid, performance and payment bonds and supply bonds for contractors with program capacity needs  - from “First Bond” to $25 million. Additionally, we can assist with the following:

  • License and Permit Bonds
    • Contractor License
    • Highway and Street Permit
    • Agent/Adjuster/Broker License
    • Fuel Dealer
    • Professional License
    • Automobile Dealer
    • Alcoholic Beverage Compliance Bonds
  • Probate Bonds
    • Administrator
    • Executor
    • Guardian
    • Trustee Bonds
  • Receiver or Trustee Bond in Bankruptcy
  • Public Official
    • Notary Public
    • Sheriff
    • Deputy Sheriff
    • Constable
    • Jailer
    • County/City/School Treasurer Bonds
    • Court Clerk
    • Loan Closing Attorney
    • FHA Schedule Bonds
  • Court Bonds
    • Plaintiff Replevin
    • Plaintiff Attachment
    • Cost Bonds
  • Miscellaneous Bonds

Fidelity Bonds - ERISA (Pension Plans), Business Services Bonds (Janitorial)