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A Surety Brokerage Serving Contractors

Services Bonds

Shamrock Bonding Services Insurance Brokerage, Inc. provides a complete line of surety products. Below we overview our Bond and Document Imaging Product Line with a general discussion of each:

License & Permit BondsSurety-Insurance-Bond-Emblem-with-Strap

Many businesses are required to obtain a license from the State of California or local governmental body in order to start and operate an ongoing business. Generally license bonds guarantee that the principal will comply with the laws and regulations for a particular industry.License and permit bonds serve the purpose of protecting the interests of the public. Most license bond requirements can be satisfied with a cash deposit held by the state or licensing municipality in lieu of a bond.Surety Hub was established to by Shamrock Bonding Services Insurance Brokerage, Inc. to facilitate the purchase of California License and Permit Bonds over the internet and with direct billing.

Subdivision Bonds

Also called site improvement, plat or completion bonds, they provide a guarantee to a municipality or government entity that the public improvements (typically curbs and gutters) will be financed and constructed at a future date.Alternates to Subdivision Surety Bonds

While there are at least five different methods to satisfy the financial guarantee requirement, corporate surety bonds are the most used option by far. Other options are: irrevocable letters of credit issued by a bank, certificates of deposit (CDs), tripartite agreement and cash deposited with the government entity.Difference between Subdivision and Performance Bonds

It is important to understand that the principal of the subdivision bond guarantees the installation of improvements without regard to progress payments or other financing arrangements. Conversely, the principal on a standard performance bond completes construction only if they are paid per terms of the contract.Often a contractor is asked to provide subdivision bonds for a project he has negotiated. It is important that the contractor understands what he is being asked to provide before moving forward with the project.Subdivision bonds are not freely written by all sureties because of their unique nature. In fact a few surety companies write the majority of development firms and home builders that require subdivision bonds.

Construction Bonds

The contract bonds assure the fulfillment of actions for the principal’s obligations specified in a contract.

There are three parties involved in all bonding arrangements and in the case of construction bonds they are as follows: the project owner (obligee), construction contract firm (principal), and the surety company.

Overview of common contract bondsThere are four contract bonds used for most public works projects:

  1. The Bid Bond. This bond guarantees the project owner that the contractor will respond to a successful bid with final bonds: performance and payment bonds at a minimum.
  2. The Performance Bond. This bond is assurance for the owner that contractor will perform according to terms of the underlying contract.
  3. The Payment Bond. This ensures the contractor will pay for subcontractors, crews, and supplies necessary for the job’s completion, and also protects the project owner from liens initiated by those entities against the contractor.
  4. Maintenance Bond. After accepting a completed project, this bond protects the owner against defects for a specified period, often one year.

Bond Claims

Claims scenarios are clearly the most difficult for all parties of the surety bond. If problems begin to arise with a project, often the surety will take a proactive position.

If a contractor needs liquidity, cash can be supplied rather than allowing things to get worse. When problems do occur, it’s in the best interest of the surety company to limit the damage but not restrict the contractor so as to cause him more difficultly. Communication and trust are key elements to a successful work-out strategy.

Imaging Systems

Imaging or digital imaging in particular refers to the conversion of paper documents to digital images. Imaging systems allow these digital documents to be stored and organized in such a way as they are available for use in work flow by a company’s employees. A well thought out solution should also provide backup data protection.

Chameleon is such a product especially designed for contractors and developers. It electronically captures and stores the documents as images, and improves the construction business process.

Court Bonds

Court bonds are also called litigation or judicial bonds, and are often required for parties involved in a lawsuit. They are designed to protect one of the parties from loss suffered if the court favors the other party and to ensure the parties abide by the court’s orders. Other court bonds may be less familiar to the general public, but no less employed by the court system.

Appearance BondsIn most jurisdictions in this day and age, an appearance bond is the moniker given to those court bonds that are utilized in a criminal case. The main purpose behind the court bonds that are used in a criminal case, that are used to gain the release of the defendant from jail, is to guarantee the appearance of the defendant at future court proceedings.

Attachment Bonds

This bond is a guarantee of payment if a property has been attached wrongfully. A person who has had property attached wrongfully is issued a defendant’s attachment bond, and is for the purpose of covering judgments should they go against him or her. The bond is usually ordered to cover costs plus interest.The plaintiff’s attachment bond is for those who are attempting to seize property that was a security for a debt, although the property still belongs to the defendant. This bond provides for loss if the decision goes against the plaintiff and a judge decides that there are no grounds to attach the property.

Cost Bonds

The court requires this bond of a litigant to guarantee the costs of the proceedings. Common fees covered in this bond are sheriff’s fees, court clerks, and other miscellaneous costs. This is often required in some states for out-of-state residents to file suits.

Liquidator Bond

This bond is a guarantee of performance of a state appointed trustee who has been hired to liquidate a business.

Indemnity to Sheriff Bond

This bond protects a sheriff from suits filed by those whose property the sheriff seizes. Because the sheriff is usually the one who serves any papers ordering properties seized, there need to be bond provisions for defendants who sue the sheriff for seizing the wrong property according to faulty writs and paperwork.

Plaintiff’s Bonds

This bond guarantees payment to a defendant of damages suffered if the court decides in his or her favor. The amount is determined by the court. Examples of plaintiff bonds are replevin and attachment (sequestration) bonds.

Defendant’s Bonds

A defendant’s bond ensures the plaintiff receives damages if the judgment is in favor of the plaintiff, and the amount is set by the court. The defendant’s side of the replevin and attachment bonds (release of attachment) are examples and collateral is often required.

Appeal Bond

Also called the supersedeas bond, it prevents creditors from collecting on a judgment that favored them until the appeal process is over. This bond offers the creditors a guarantee that the money will be paid to them if the judgment is not reversed in the appeal process.

A defendant’s appeal bonds are issued in case the judgment against him or her is upheld, and the plaintiff’s bond covers a judgment that is rendered in favor of the defendant. Each one is for the benefit of the other, and covers the other party’s costs, sometimes with interest.

Injunction Bond

This is a bond that results from an injunction restricting the actions or conduct of another party. A restraining order is a form of short-term injunction. The bond provides for the losses for the defendant if the court decides the injunction was wrongful.

Replevin Bond

A plaintiff who files a replevin bond is claiming that the property was wrongfully seized from him or her by the defendant. If the court decides against the plaintiff, the property will go to the defendant, and will stay with the plaintiff if it’s decided that he or she is entitled to it.

Commercial Bonds

Commercial Bonds typically refer to the client more than the actual type of bond. These firms include larger closely held and public firms which require bonds and are not construction firms.These bonds are often referred to as non-contract bonds by surety bond underwriters. The bonds written for commercial interests can fall into all categories of bonds including court bonds, subdivision bonds, license and permit bonds and contract bonds.The emphasis in underwriting these cases often lies with the principal’s having a significant indemnity package backed by high net worth balance sheets. It’s not uncommon for these commercial interests to qualify for surety bonds that are otherwise unavailable to most applicants. Examples of these bonds include pure financial guarantees, lease bonds and reclamation bonds.Public official bonds are also considered commercial bonds and they cover the actions of public officials and guarantee the honest performance of all duties required by laws and regulations. These bonds are available for mayors, judges, law enforcement personnel, court clerks, treasurers, tax collectors and animal control officers to name a few.Federal non-contract bonds are required for customs and immigration issues. Also included in these bonds are Medicare and Medicaid workers; liquor bonds are also in this category.