Frost Insurance Agency is pleased to announce that we now offer commercial fidelity & surety bonds in Archbold, Bryan, Defiance, Delta, Maumee, Monclova, Montpelier, Napoleon, Perrysburg, OH, and the Surrounding Areas.
For nearly a century, small businesses, contractors, organizations, and farmers in northwest Ohio have trusted us for all their business and personal insurance needs. With the addition of surety bonds, the same independent agents you have built long-lasting relationships with can provide you with the insurance and surety bonds you need to protect and grow your business and have a positive impact on the communities we serve.
Surety bonds are more than just a vote of confidence. These financial securities are backed by the full faith and credit of the underwriting insurance carrier, demonstrating that your business has the financial resources to fulfill your contractual obligations on time.
We offer Bid, Performance, and Payment Bonds that local general contractors and subcontractors need when bidding on most public works and commercial projects. These bonds guarantee your bid is submitted in good faith, that you will complete the work according to project specifications, and that you will pay vendors and subcontractors on time.
Certain professions, such as mortgage brokers and general contractors, must post a surety bond to meet Ohio licensing requirements. Municipalities also often require Permit Bonds, Utility Bonds, and Right-of-Way Bonds before work begins.
Every business needs financial protection. Our Fidelity Bonds, also known as Employee Dishonesty Coverage, safeguard your company against financial loss caused by fraud or theft. Additionally, we provide ERISA Bonds for business owners who manage company 401(k) or pension plans in strict accordance with federal regulations such as ERISA Section 412.
We provide local legal entities, fiduciaries, and estate administrators with Probate, Guardian, and Executor Bonds that are mandated by the Court to ensure you will execute your fiduciary duties in accordance with federal and state laws.
Unlike traditional insurance, which compensates your business following a claim for a covered peril, a surety bond is a financial guarantee between your company or organization (the principal), the party requesting the bond (the obligee), and the bond provider (the surety).
Securing a bond is a third-party endorsement of your creditworthiness, financial integrity, and operational capability. Being bonded means your business can:
Protect and Expand Your Business Today! Contact Frost Insurance Agency today to discuss your fidelity and surety bond requirements with a local independent agent.
Bid bonds and performance bonds allow contractors to compete for public and high-value private jobs they would otherwise be precluded from bidding on. As a third-party financial guarantee, surety bonds build credibility, reduce owner risk, and open doors to larger commercial projects.
A bid bond is submitted with a contractor’s bid proposal on a project. It provides a financial guarantee to the project owner that the contractor has submitted a proposal in good faith, has the resources to accept the job at the quoted price, and will sign the contract and deliver performance/payment bonds if awarded. If the winning contractor backs out or refuses to sign the contract, the project owner can claim against the bid bond to recover the cost difference of hiring the next-lowest bidder.
An insurance company underwrites a bid bond. So, it is like a trust badge that guarantees project owners the contractor will perform as agreed.
Once a contract is awarded, a performance bond typically replaces the bid bond. It guarantees that the contractor will complete the project according to the full terms, specifications, and timelines outlined in the construction contract.
If the contractor goes bankrupt or fails to deliver work that meets contract standards, the surety steps in. The surety may financially compensate the owner or arrange for another contractor to complete the job up to the full bond amount, usually 100% of the contract value.
Performance bonds build trust, allowing contractors to compete for larger projects where owners want a legally binding third-party financial guarantee that protects their capital.
Employee theft is a bigger problem than many businesses realize. According to recent statistics, over 95% of businesses have employees who have either stolen from them or are currently stealing but haven’t been caught. Companies of all sizes lose $50 billion to $54 billion annually to dishonest workers, but two out of three thefts occur in small and mid-size businesses, making them the overwhelming majority of all employee theft. Fidelity bonds are an essential tool for protecting your business from these financial losses.
A fidelity bond is a type of business insurance that protects against financial loss caused by employee dishonesty, fraud, or theft. While standard commercial liability and property policies cover external damage like fires, storms, or break-ins, they usually exclude loss resulting from wrongful acts committed by your own staff.
Whether you operate a manufacturing facility, a medical office, or a retail store in Northwest Ohio, fidelity bonds ensure that if an employee misappropriates funds or steals assets, your business is compensated, preserving cash flow and the bottom line.
To illustrate how a fidelity bond protects your business, it is critical to expose the most likely areas where internal fraud & theft commonly occur:
When employee dishonesty occurs, the immediate financial shock can threaten a growing company’s solvency. Fidelity bonds provide direct reimbursement for verifiable losses, helping Northwest Ohio businesses recover without tapping core reserves or taking out a business loan.
Fidelity Bond Coverage:
Backed by a team of experienced Northwest Ohio insurance professionals, Frost Insurance Agency ensures your business secures the exact bond coverage required to bid, operate, and grow with confidence.
Navigating legal, municipal, or contractual bonding requirements can be challenging. As an independent agency headquartered right here in Northwest Ohio, our local professionals will guide you through the entire bonding process:
To help our clients understand how surety & fidelity bonds can help protect and grow their businesses, below are answers to the most common questions we receive.
If your company defaults or violates the terms of a bonded contract, the obligee can file a claim against the bond. If the claim is valid, the surety pays the obligee, and your business reimburses the surety for the paid claim.
A bid bond is a financial guarantee that you will accept the job at your submitted bid price and will provide the required performance/payment bonds if awarded the contract. A performance bond guarantees that your team will execute and complete the project according to the exact plans, specifications, and timelines agreed upon in the contract.
A standard fidelity bond covers financial loss caused by:
A bonding application requires the following basic information:
Surety bond premiums are calculated as a percentage of the total required bond amount rather than the total contract price.
Contact Frost Insurance today to schedule a complimentary risk review or request a bond quote.