Surety bonds throughout Michigan.
A surety bond is a great way to guarantee that a large investment in a project is not lost—whether or not the work gets done. This type of insurance is especially common in the construction industry, and is often utilized for government contracts.
A surety bond is an unusual form of insurance in that one person or organization pays for it, while another receives the benefit.
It’s easier to understand with an example. Imagine a contractor is building a new office building for a government agency. The agency naturally wants a guarantee that the taxpayer won’t be left out of pocket if the contractor fails to deliver the offices as promised.
The answer is a surety bond. The contractor pays a premium to an insurer to purchase the surety bond. The insurer then pays the necessary compensation to the agency if the contractor fails to deliver. The big difference between this and ordinary insurance is that the insurer can and will go after the contractor to get this money back. The point of the surety bond is that the agency gets the assurance that it won’t have to chase after the money itself.
While government agencies commonly insist on a surety bond, it can work with any two organizations. The one that purchases the surety bond is “the principal,” while the one that gets any payout is “the obligee.”
If there’s anything else you need to know about surety bonds, contact us today.
Michigan Notary Bond
A Michigan notary is required to have a $10,000 Michigan notary bond. The Michigan notary surety bond protects the people of Michigan from any mistakes you might make while performing your notarial duties. In order to protect your personal financial assets, we highly recommend you also purchase E&O Insurance.
The premium for a 6-year Michigan Notary bond is $55. This includes the notary bond and a $10,000 errors & omissions policy that is required by the State of Michigan. Higher limits for errors & omissions can be purchased.
Michigan Lost Title Bond
Michigan requires residents to purchase a surety bond as part of the application process to obtain a bonded title. The bond ensures that the rightful vehicle owner will not suffer a financial loss if the title applicant is seeking to obtain the title fraudulently. If the title applicant is engaging in fraud, then the rightful vehicle owner can file a claim against the bond and receive compensation up to the full amount of the bond. In short, the bond acts as a safeguard against people attempting to obtain ownership of a vehicle through unethical means.
Vehicle & Watercraft Title Costs
The premium for a Michigan title bond varies depending on the value of the vehicle or watercraft. The Michigan Secretary of State requires the bond limit/penalty to be double the value of the vehicle or watercraft.
Bond amounts up to $6,000 are $100
Bond amounts $6,001 to $25,000 are $15 per $1,000 of coverage.