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The Roles of The 3 Parties Involved in a Surety Bond Agreement

August 20, 2011

 Getting a surety bond has become an integral part of any business transaction and negotiation. In today’s world where contracts are frequently breached and fraudulent transactions have become quite commonplace, entering into a surety bond agreement greatly helps companies and individuals manage financial risk and eliminate any possibility of unnecessary frustration.

When entering into a surety bond agreement, it is important to remember that there are three different parties that will be involved in this: the obligee, the principal and the surety. Here is an overview of the roles and responsibilities of each of these roles to give you further understanding on how a surety bond works.

The Obligee
By definition, the obligee is the party in the surety bond agreement that is considered to be the recipient of the obligation. The obligee refers to the individual or the company that initiated the contract or the project who is expecting that the terms and conditions of the signed contract to be met. Usually, it is the obligee that writes up the original contract signed and quite often, it is the obligee that is the one who takes out the surety bond to incorporate into the contract.

The Principal
The principal in the surety bond is the individual or company that will be fulfilling the terms and conditions of the contract. The principal is expected to uphold the terms and conditions stipulated on the contract which has been signed with the obligee since one of the main purposes of the surety bond is to ensure the credibility of the principal and ensure that all the terms and conditions stipulated in the signed contract would be met. While the obligee may be the one who takes out the surety bond, it is actually the responsibility of the principal to pay the premiums to keep the surety bond in force.

The Surety
The last party involved in the surety bond is the surety. In the original contract, the surety is not included. However, in the surety bond agreement, the surety is the most important party since it is the surety that serves as the guarantee to the obligee that the principal would be able to meet the terms and conditions of the contract signed and agreed upon. The surety may be an individual or another company. The surety serves as a buffer to cover any financial loss that has been brought about by the inability of the principal to meet the stipulated terms and conditions of the agreed contract whether this is the failure to pay off a debt for a mortgage taken out or damages and financial loss incurred by a company due to the inability of the principal to complete the agreed project.

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Small Business Owners Can Have Big Risks & Need Insurance Protection

August 20, 2011

What insurance policies should the small businesses owner have. Don’t risk everything to save a few bucks. Small businesses, although advantageous, can be very susceptible to a lot of problems. Owners of small businesses must ensure the security of his company by virtue of risk insurances. Small business owners sometimes have a negative impression of insurance. They think that insurance is only for big time companies who have hundreds of employees and more work being done. What these business owners don’t know is that having small business insurance would actually be beneficial for their small companies.

There are different types of small business insurance policy that would guarantee the security of different aspects of a small business. First is the Business Owners Policy which answers to lawsuits regarding physical harm that arisen in the premises of the business area. This policy covers the small business’ employees, volunteers, and owners. Also, some businesses may call for an Errors & Omissions Liability Policy. This policy covers lawsuits regarding economic damages that were caused by the owner’s company. Examples of economic damages include the failure of the business to provide timely and efficient service therefore wasting the money paid by the customer.

Another insurance policy type is the Commercial Property Insurance. This insurance policy is responsible for the coverage of losses of products from natural calamities, fire, vandalism, and the likes. It also covers the indirect loss of income and profit of the business. Whether or not the business owns any vehicles, a small business needs an Auto Insurance Policy that would insure the business owned cars, motorcycles, scooters, and other vehicles for liability. This policy type also secures insurance for non insured company motorists. Another insurance policy that is required is the Workers’ Compensation Insurance Policy.

The Workers’ Compensation Insurance Policy provides benefits such as payment of medical bills, grant of awards to employees with disability, and death benefits to the small business’ employees. The last insurance policy is the Umbrella Insurance Policy. Umbrella Insurance Policy can give added protection to the business without adding more cost for the owner. Depending on the insurance company, having an Umbrella Insurance would mean having addition budget in liability protection. This type of insurance policy is oftentimes inexpensive given the fact that the coverage of the insurance is very wide scope.

All in all, it is a must for a small business to be insured. Small business owners must get over their wrong impression that their small businesses need not be insured. Small business insurance is important because it will help prevent the business from undergoing costly lawsuits that would take quite a portion of the company’s income.

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What Builders Risk Insurance Will and Will Not Cover

August 15, 2011

Building owner and contractors alike purchase builders risk insurance. Builders risk insurance will cover any construction project. This includes projects under renovation, construction and repair. The policy will cover building and structures on the property during construction. This includes all fixtures, machinery and equipment used in construction. On-site materials are also covered. The policy will not cover sidewalks, fences, roadways and swimming pools. Also damage to plants, trees and laws are not covered. The policy may exclude damage cause by faulty work done by the contractor. Flood damage is also excluded from the policy. Before purchasing a builders risk insurance policy, make sure to read all of the exclusions.

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Two Ways A Magician Brings More To Your Kids Party

August 1, 2011

When you hire a new york magician for your kids party, in many ways you are taking on a tasks that could be the hardest of the ones you have to tackle in putting on a party for your kids. Having to sort through all the people telling you that they are good magicians puts you in a tough place. WIth all the work you have to put in to find thr eight magician, is it all worth it? Wouldn’t it be easier to just hire the first one that looks good and get on with your birthday party ideas? This is the sad mistake that all too many parents in your position make. They end up with disappointment all around; the kids are disappointed in the performance, you are disappointed in the reaction you get from your kids, and no one is happy. So let’s look at how a true professional improves that.

First, you get a different level of consistency. This is where all professionals differ from amateurs; they deliver consistent results. This is what you want for your kids and your kids party.

Second, control. See, a good magician is going to use fun magic to keep the attention of your kids riveted on them. This means that you have a period of time that where you are not “herding cats” as it were, and you can spend more time cleaning up, preparing for the next event or whatever else you want to do.

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