Bonds

A fidelity bond or surety bond can help protect the interests of your growing business.

At Reno Insurance Agency, we combine the knowledge we have in the surety and fidelity bond industry with the financial strength of the bonding companies we represent to provide our clients with superior local service. A surety bond is defined as a three-party agreement that legally binds together a principal who needs the bond, an obligee who requires the bond and a surety company that sells the bond. The bond guarantees that the principal will act in accordance with certain laws. 

Reno Insurance has worked with probate and court bonds, license and permit bonds, bid and performance bonds, plus crime and employee theft bonds for 40+ years. Contact Reno Insurance Agency for help with growing and protecting your business with bonds. 

A surety bond involves three parties:

• The Principal - The person or business with an obligation to perform.
• The Obligee - The person, company, or government unit requiring the guarantee.
• The Surety Company - Who provides the bond to guarantee the principal fulfills their obligation.

As long as the principal performs their obligation the surety company has no role. If the principal does not do what is required, the surety company has to meet the obligations. If this happens, the surety company is entitled to be reimbursed for losses and costs by the principal. Before a bond is written, the surety company may require the principal to provide an indemnity agreement from the business and also the personal indemnity of the principal. This means that is the surety company pays out on a bond, they are coming after the principal for financial reimbursement.