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In addition to the property and casualty insurance Financial
Pacific Offers, we have a small, but growing surety book of
business.
Though
surety is quite different than "ordinary" insurance,
Financial Pacific strives to provide superior services and
a custom-underwritten touch to its surety producers as well.
We underwrite every risk carefully and always try to find
a way to write the requested bond. Our approach is unique
in a traditionally black and white industry. We are
willing to look at most surety bond requests. The following
is a description of some of the more common surety terms.
What
is a Bond?
A surety bond is a three party, legal agreement where in the
bond guarantees that one party will complete its obligation
to the second party. In essence, the bonding  company
is a co-signor.
Individuals
and businesses must qualify for bonds. There are personal
and business guarantees (indemnification) to the surety company,
guaranteeing that if there is money paid out by the surety,
the owner (principal) of the bond, must reimburse the surety.
Premium rates are usually set and not negotiable. Bonds
are the opposite of insurance in that theoretically a surety
expects no losses.
Surety
Underwriting
A
surety bond is essentially a credit instrument and therefore
is underwritten like a bank loan. Financial Pacific
must determine the character, capacity, capital and credit
of the applicant by conducting an investigation of each individual
owner and their business background, experience, financial
strength and credit history. The specific bond obligation
is also analyzed.
Select
one of these links to find out more about the types of bonds
offered by Financial Pacific:
License Bonds Contract Bonds
Subdivision Improvement Court
License
Bonds
 Many
public entities require certain individuals or businesses
to be licensed and bonded to protect the public against fraud
and to regulate that practice or industry. There are many
licenses required to be bonded, including contractors, tax
preparers, notary publics and car dealers. Select here
to see a sample of the types of license bonds Financial Pacific
writes.
Contract,
Bid, Performance and Payment Bonds
Bid
Bonds
 When
a contractor submits a bid on a certain project, the owner
(obligee) may require a contractor (principal) to support
his bid by obtaining a bid bond guaranteeing that the contractor
will enter into a contract with the obligee in accordance
with the terms of the bid solicitation. A surety company
will underwrite the contractor and contract prior to the issuance
of a bid bond because the bid bond guarantees that the contractor
qualifies for that specific job.
Contract,
Performance and Payment Bonds
Contract
bonds guarantee performance of a specific contract and the
payment of all labor and materials furnished to complete a
contract. Contractors performing all types of construction
and firms who provide services or products are often required
to post these bonds.
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Subdivision
Improvement and Payment Improvement Bonds
Developers,
builders and individual landowners who make mandatory public
improvements to their property are required by local authorities
to guarantee that the landowner completes these improvements.
A subdivision bond obligates the principal and the surety
to complete subdivision improvements.
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Court
Bonds
 Court
bond is a general term embracing all bonds and undertakings
required of participants in a lawsuit, permitting them to
pursue certain remedies in the courts.
There
are two major categories: Judicial, which is either a Plaintiff
or Defendant Action; and Fiduciary, which is to guarantee
that an individual is honest and faithful in the performance
of all duties for another individual or estate as set forth
by the court.
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Call
Financial Pacific First!
Let
us prove that we are uniquely positioned and qualified to satisfy
your needs. We have knowledgeable, experienced staff ready to
answer your questions. We strive to respond quickly and eliminate
unnecessary requests for information, by zeroing in on the important
aspects of each account in order to make prompt, yet informed
decisions. Please give us a call or use our Agent Finder
to locate an agent in your area.
Top
 Click
to see License & Permit Bond types we underwrite
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