What exactly is a bond?
A bond in layman’s terms is a way to secure a debt.
It is a way of you the consumer, being able to put up a little cost up front that says “I am letting you borrow this money so as to your agreement to pay the face value of said bond if ever needed”. In the real world, bonds can be issued by a government, municipality, corporation, federal agency and other entities.
In the insurance world a lot of times you will see bonds requested in the following ways:
Surety Bond
A surety bond is a contract between three parties. The person who is the recipient of an obligation, the primary party who will perform the contractual obligation, and the person who assures the obligation will be done.
Lost title Bond
These bonds are a type of surety bond. They provide a proof and guarantee of ownership to the Department of Motor Vehicles. When no other form of documentation is available a Lost Title Bond shows the DMV that you are the “owner” of said vehicle.
Contract Surety Bond
Contractor bonds are one of the most “popular” bonds you will see asked for in the insurance space. Contract bonds are used in the construction industry by general contractors. They are a guarantee to a project’s owner that the general contractor will adhere to the contract put in place.
License and Permit Bonds
These types of bonds function as a guarantee to a government entity that a company will comply with a statute, state law, ordinance, etc.
Some examples are but not limited to:
- Contractors License Bonds
- Tax Bond
- Environmental Bonds
- Broker’s Bonds
- Motor Vehicle Dealer Bonds
- ERISA Bonds
Our job as an independent insurance provider is to help you navigate a cumbersome system in finding the best fit for your bond requirements. We can help you find your bond needs, provide you with your bond, and help you get it to the party requesting.
Call our office today for any surety bond!
Nevada & California Surety Bonds
Businesses operating in Nevada and California are often required to carry a surety bond before they can get licensed, bid on work, or open their doors. Cusick Insurance Brokers works with underwriters who specialize in the bond categories that carry larger bond amounts and more involved underwriting, including contract bonds, money transmitter bonds, mortgage company and broker bonds, collection agency bonds, and gaming establishment bonds. If your business needs a bond tied to a state license or a construction contract, our team can shop your bond to get you competitive pricing on the premium.
Contract Surety Bonds (Bid, Performance & Payment Bonds)
General contractors and subcontractors bidding on public or private construction projects in Nevada or California typically need bid, performance, and payment bonds. These bonds guarantee the project owner that the contractor will complete the work and pay subcontractors and suppliers as agreed. Because contract bond amounts are tied to project size, premiums scale with your contract value, and larger jobs call for stronger underwriting support to secure favorable rates.
Money Transmitter Bonds
Companies licensed as money transmitters in Nevada or California are required by state regulators to post a substantial surety bond as a condition of licensure. These bonds protect consumers if a licensee fails to meet its financial obligations. Bond amounts for money transmitters are among the highest of any license bond category, so working with a broker who understands the underwriting requirements can make a meaningful difference in your premium.
Mortgage Company & Mortgage Broker Bonds
Nevada and California both require mortgage lenders, servicers, and brokers to carry a surety bond as part of their licensing with the state. These bonds guarantee compliance with state lending laws and protect borrowers from fraud or licensing violations. Bond amounts vary by license type and loan volume, and our team can help determine the right bond amount for your license category.
Collection Agency Bonds
Debt collection agencies operating in California or Nevada generally need a surety bond to obtain or renew their collection agency license. This bond protects consumers if the agency violates state collection laws. Depending on your state and license type, bond amounts can be significant, and underwriting often looks at your agency’s financial history.
Gaming Establishment Bonds
Nevada’s gaming industry has some of the strictest bonding requirements in the country. Gaming establishment bonds are required by state gaming authorities to ensure licensees meet their regulatory and financial obligations. These bonds tend to carry higher bond amounts given the scale of gaming operations, and premiums are underwritten accordingly.
Employee Leasing (PEO) Bonds
Professional employer organizations and employee leasing companies licensed in Nevada or California are typically required to carry a surety bond tied to their payroll volume. As a client base and payroll grow, the required bond amount grows with it, which means larger PEOs often need bonds well beyond the minimum. Underwriting looks closely at financial statements, so having a broker who can present your PEO’s financials effectively can help control your premium.
Self-Insured Workers’ Compensation Bonds
Employers that self-insure their workers’ compensation obligations in Nevada or California must post a surety bond to guarantee they can pay claims. Because the bond amount is based on projected claims liability rather than a flat statutory figure, these bonds tend to be among the largest a business will carry, and underwriting typically involves a detailed look at loss history and financial strength.
Motor Fuel Distributor Bonds
Motor fuel distributors and suppliers licensed in Nevada or California are required to post a bond guaranteeing payment of fuel taxes owed to the state. Bond amounts scale with the volume of fuel distributed, so larger distributors can face substantial bond requirements, and premiums are underwritten with that volume in mind.
Not sure which bond your license or contract requires? Contact Cusick Insurance Brokers and we’ll help you identify the right bond, the required amount, and get you a quote.