Insurance Agents Should Promote Business Service Bonds

This publish is a part of a collection sponsored by Previous Republic Surety.

Enterprise bonds and constancy bonds are simple cross-sells to many business purchasers. Incorporate them into your annual assessment of their coverages.

We wish to suppose that service staff are sincere and at all times have the shopper in thoughts. Sadly, an worker working in a buyer’s dwelling or enterprise could also be tempted to take one thing — jewellery, money, instruments, a laptop computer. It occurs, and when it does, a enterprise companies bond can cowl the expense of changing the proprietor’s stolen or broken property.

A enterprise companies bond is totally different from a constancy bond, which protects an employer towards worker theft, embezzlement or laptop fraud. A enterprise companies bond, or third-party constancy bond, covers losses suffered by a 3rd social gathering — in different phrases, the shopper. These bonds are for companies which have staff who work on their clients’ premises.

Many varieties of companies want protection

Typically known as janitorial bonds, enterprise companies bonds cowl any variety of occupations — not simply janitors. Companies that ought to think about this protection embody electricians and plumbers, contractors and restore companies, movers, locksmiths, painters, exterminators, landscapers and gardeners, pool cleaners, pet sitters, maid companies, and residential well being aides, to call a number of.

White-collar professionals have a necessity for enterprise companies bonds, too. IT consultants and laptop technicians, actual property brokers, inside decorators, caterers, tutors, music academics, and salespeople are candidates for this protection as nicely.

Brokers might help their purchasers higher perceive the necessity for this insurance coverage by bringing it up when it’s time to resume their normal legal responsibility, property, and different strains of business insurance coverage. Merely make it a part of your annual assessment of their protection. Ask them if they’ve staff who work outdoors the workplace. You’d be shocked what number of corporations have some sort of on-premises publicity.

Just a few factors price noting:

• Employers typically suppose they’re already lined and don’t want this safety. Common legal responsibility and property insurance coverage don’t cowl one of these publicity. Neither do bundle coverages similar to enterprise homeowners’ insurance policies (BOP).
• Employers will let you know their staff would by no means steal from a buyer. Sadly, research present that office theft is a typical prevalence. Enterprise companies safety offers your purchasers peace of thoughts ought to a theft happen.
• The acquisition of enterprise companies protection permits your purchasers to promote themselves as “bonded.” This can be a actual promoting level for a companies enterprise. Prospects typically search for corporations which might be bonded or would require {that a} contractor be bonded. Being bonded is usually a aggressive benefit on your purchasers.
• Enterprise companies bonds are cheap. A coverage for a small enterprise could be bought for lower than $200 a 12 months. These bonds additionally cowl the proprietor of an organization, so they’re a good selection for sole proprietors who might not have any or just some staff.
• Conviction clause. Many states require there to be a conviction earlier than the bond will cowl the loss.

Simple to put in writing and robotically renews

Enterprise companies bonds are a simple protection to put in writing. No software or underwriting is required. All an agent has to do is log in to Previous Republic Surety’s BONDSTAR^TM portal, enter some details about their consumer, after which select the extent of protection and variety of staff. Previous Republic provides limits of as much as $250,000 with a zero deductible. The method solely takes a couple of minutes, and the coverage is issued instantly. Insurance policies renew robotically on an annual foundation, and there’s a low cost on insurance policies written for a three-year time period.

As a result of the Previous Republic provides these coverages by way of our on-line portal, the underwriting is computerized and they are often issued shortly. Our charges are the identical throughout the board, based mostly on the variety of staff and the protection quantity. This makes it simple to debate coverages along with your purchasers, and employers know upfront what their annual price shall be.

Brokers additionally earn a really aggressive fee when inserting this enterprise. Whereas the coverage quantities are comparatively small in comparison with different coverages chances are you’ll be writing, the commissions can add up. Given the relative ease in inserting the enterprise, it’s nicely well worth the effort. Plus, you’re offering priceless protection to your purchasers that they will not be conscious they want.

Specialty outdoors companies bonds

The Previous Republic additionally provides specialty outdoors companies bonds. This can be a separate protection designed to guard a buyer’s property when in transit. A very good instance is a restaurant that gives valet parking. If a restaurant worker steals one thing from a buyer’s automobile whereas parking it, the coverage will cowl the price of the stolen property. Specialty outdoors companies bonds additionally covers towing companies, package deal supply companies, and automobile repossession companies.

Not too way back, baseball legend Alex Rodriguez (A-Rod) made information when it was reported that objects price $500,000 have been stolen from his automobile. Had his automobile been within the possession of a valet or towing service, these losses might have been lined by a specialty outdoors companies bond, significantly if the thief was convicted as required by many states.

Get began in the present day

Discover out extra about Previous Republic Surety’s enterprise companies bonds, specialty outdoors companies bonds, and BONDSTAR on our web site. It’s also possible to contact an Previous Republic department workplace to speak to considered one of our representatives.

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