Illinois Notary Bond Requirements | Notary Surety Bond Las Vegas
Vaught Wright & Bond
P.O. Box 1328
533 Main Street
Placerville, California 95667
Phone: 530-622-1835
Toll-Free: 800-652-0168
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CA Lic. #00448556

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insurance vs bonds

What are Surety, Contractors and Other Bonds For? Are Bonds Insurance?

Bonds are frequently confused with insurance, but they have some major differences. A primary difference can be summarized as follows: When you purchase an insurance policy, you are protecting yourself against a loss. When you purchase a bond, you are protecting someone other than yourself, or promising to make payment against a loss. Sound confusing? Let me provide a couple of examples.

If you buy a homeowners policy, one of the purposes is to protect yourself against someone stealing your possessions. If you are burglarized, you file a claim and the policy reimburses you for the cost to replace the stolen property. Now, say you hire a maid service to clean your house. Hopefully the maid service is bonded. If their employee steals from you, you could be reimbursed from their bonding company.

After you are paid for your stolen items, another major difference between insurance and bonds occurs. The bond holder is still responsible for repayment of the damages to the bonding company. This can be tough to swallow, but the bonding company will expect full repayment of any monies they pay out on the holder’s behalf.

Since the bonding company will want to collect back what they have paid out in a claim, there is another major difference between bonds and insurance; qualifying. Depending on the type of bond, good credit and proof of assets may be required. Fortunately we have a large selection of bonding companies, and some are much easier to qualify for.

I have provided only a brief overview of bonds. Bonds have many other purposes, including DMV, lost trust notes, contractor’s licensing bonds, bid bonds, notary bonds, just to name a few.

Most bonds are easily obtained. If you have questions, or are in need of a bond, please contact our bonding department: info@vwbins.com   (800)652-0168.