Bonds

​At Toth-Felty Insurance Agency, Inc., located in Middleburg, Ohio, we specialize in providing a comprehensive range of bonding services tailored to meet the diverse needs of our clients. Our commitment is to ensure that your bond requests are processed efficiently and accurately, facilitating your business operations without unnecessary delays.​

Bond Request Process

To initiate a bond request with us, please follow these guidelines to ensure prompt and accurate processing:

1. Advance Notice: Submit your bond request at least 72 hours prior to the bid due date. This timeframe allows us sufficient opportunity to obtain the necessary approvals and prepare your bond appropriately.​

2. Complete Information: Fill out the “Bond Request” form with as much detail as possible. Comprehensive information enables us to respond swiftly and accurately to your bid bond request.​

3. Supplementary Documents: Fax or email any additional required paperwork, such as bond requirements, power of attorney, or other pertinent forms. Providing these documents upfront helps prevent processing delays.​

Once we receive your request and all necessary documentation, we will process it and send you a confirmation within 24 business hours.​

Our Bonding Services

We offer a variety of surety bonds to cater to different business requirements:

1. License and Permit Bonds: These bonds are often required by federal, state, or local governments as a condition for obtaining licenses or permits for various occupations and professions. They ensure that businesses adhere to regulations and codes relevant to their industry. For example, contractors may need these bonds to obtain building permits or contractor licenses. If you have a blank bond form provided by the municipality, please email or fax it to our office. If no form was provided, simply provide us with the name of the municipality. ​NASBP

2. Bid Bonds: These bonds guarantee that a contractor’s bid has been submitted in good faith and that the contractor intends to enter into the contract at the submitted price. They provide assurance to project owners that the bidder has the financial means and capability to undertake the project as proposed.​

3. Performance Bonds: Performance bonds protect the project owner from financial loss should the contractor fail to fulfill the terms and conditions of the contract. They ensure that the contractor completes the project according to the contractual obligations, including quality and timeline specifications. ​CSBA

4. Supply Bonds: These bonds guarantee the fulfillment and performance of a contract to furnish specified supplies or materials. They assure the project owner that the supplier will deliver the agreed-upon materials in accordance with the contract terms.​

5. Subdivision/Completion Bonds: Subdivision bonds guarantee that the principal will finance and construct certain improvements, typically related to public infrastructure within a subdivision. They ensure that developers complete required improvements, such as sidewalks, streets, and utilities, in accordance with local regulations.​

6. Maintenance Bonds: Maintenance bonds provide a guarantee against any possible defects or faults in materials and workmanship after the completion of a project. They offer protection to the project owner by ensuring that any issues arising within a specified period after project completion are rectified by the contractor.​

7. Non-Contract Bonds: These bonds are used for various obligations outside of construction contracts, such as probate, court, and public official bonds. They ensure compliance with legal requirements and ethical standards in various professional roles and legal proceedings.​

Understanding Surety Bonds

A surety bond is a three-party agreement that legally binds together:​

• The Principal: The individual or business that needs the bond and is responsible for fulfilling the obligation.​Palmetto Surety

• The Obligee: The entity requiring the bond, often a government agency or project owner, which receives the assurance that the principal will perform as agreed.​

• The Surety: The insurance company or surety company that issues the bond and guarantees the principal’s performance.​

In the event that the principal fails to meet their obligations, the surety steps in to fulfill the commitment, ensuring that the obligee does not suffer a financial loss. ​Palmetto Surety+1Investopedia+1

Types of Surety Bonds

Surety bonds can be categorized into several types, each serving different purposes:​LegalZoom

1. Contract Surety Bonds: These bonds are commonly used in the construction industry to ensure that contractors fulfill their contractual obligations. They include bid bonds, performance bonds, and payment bonds. ​

2. Commercial Surety Bonds: Required by government entities to ensure that businesses comply with various regulations and statutes. License and permit bonds fall under this category.

3. Court Surety Bonds: Also known as judicial bonds, these are required in court proceedings to protect against potential losses resulting from a court decision. They include appeal bonds and injunction bonds. ​NASBP

4. Fiduciary Bonds: Also known as probate bonds, these are required for individuals who administer a trust under court supervision, such as executors or guardians. ​Applying for a Surety Bond

When applying for a surety bond, it’s essential to provide accurate and comprehensive information to facilitate the approval process. Most applications will require:​

• Official Business Name and Address: The legal name and physical address of your business.​

• Ownership Information: Details about the owners or partners involved in the business.​

Depending on the type of bond, additional information may be required, such as:​

• Credit Score: A measure of your creditworthiness.​

• Personal Financial Statement: An overview of your personal financial health.​SuretyBonds.com

• Business Financials: Financial statements of your business.​

• Homeownership Status: Information about property ownership.​

• Industry Experience: A resume detailing your experience