2022-Insurance Agents Should Promote Business Service Bonds

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This publish is a part of a sequence sponsored by Outdated Republic Surety.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 residence 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 completely different from a fidelity bond, which protects an employer in opposition to worker theft, embezzlement or pc 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 take into account 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 pc technicians, actual property brokers, inside decorators, caterers, tutors, music academics, and salespeople are candidates for this protection as properly.

Brokers might help their purchasers higher perceive the necessity for this insurance coverage by bringing it up when it’s time to resume their common legal responsibility, property, and different traces of economic 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 firms have some sort of on-premises publicity.

Just a few factors price noting:

  • Employers typically suppose they’re already coated and don’t want this safety. Normal legal responsibility and property insurance coverage don’t cowl the sort of publicity. Neither do bundle coverages similar to enterprise house owners’ 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 standard incidence. Enterprise companies safety provides 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. Clients typically search for firms which might be bonded or would require {that a} contractor be bonded. Being bonded could be a aggressive benefit to your purchasers.
  • Enterprise companies bonds are cheap. A coverage for a small enterprise may 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 could 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 jot down and robotically renews

Enterprise companies bonds are a straightforward protection to jot down. No software or underwriting is required. All an agent has to do is log in to Outdated Republic Surety’s BONDSTARTM portal, enter some details about their shopper, after which select the extent of protection and variety of staff. Outdated Republic affords 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 Outdated Republic affords these coverages via 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 together with your purchasers, and employers know upfront what their annual price will likely be.

Brokers additionally earn a really aggressive fee when putting 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 putting the enterprise, it’s properly well worth the effort. Plus, you might be offering worthwhile protection to your purchasers that they might not be conscious they want.

Specialty outdoors companies bonds

The Outdated Republic additionally affords specialty outdoors companies bonds. This can be a separate protection designed to guard a buyer’s property when in transit. An excellent instance is a restaurant that gives valet parking. If a restaurant worker steals one thing from a buyer’s car 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 car repossession companies.

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

Get began right now

Discover out extra about Outdated Republic Surety’s business services bonds, specialty outdoors companies bonds, and BONDSTAR on our web site. You can too contact an Outdated Republic branch office to speak to one among our representatives.

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