What is an Insurance Bond?

In layman's terms, a bond is a way to secure a debt. It is a way of you, the consumer, putting up a little upfront cost that says, “I am letting you borrow this money per your agreement to pay the face value of the said bond if ever needed.”


In the real world, bonds can be issued by a government, municipality, corporation, federal agency, and other entities. But in the insurance world, a lot of times, you will see bonds requested in the following ways:

Surety Bond

A surety bond is a contract between three parties: the person who is the recipient of an obligation, the primary party who will perform the contractual obligation, and the person who assures the obligation will be done.

Lost Title Bond

These bonds are a type of Surety Bond. They provide proof and guarantee of ownership to the Department of Motor Vehicles. When no other form of documentation is available, a Lost Title Bond shows the DMV that you are the “owner” of said vehicle.

Contract Surety Bond

Contractor bonds are among the most “popular” bonds you will see requested in the insurance space. Contract bonds are used in the construction industry by general contractors. They guarantee a project’s owner that the general contractor will adhere to the contract put in place.

License and Permit Bonds

These bonds guarantee a government entity that a company will comply with a statute, state law, ordinance, etc.

Some examples are, but are not limited to:

  • Contractors License Bonds
  • Tax Bond
  • Environmental Bonds
  • Broker’s Bonds
  • Motor Vehicle Dealer Bonds
  • ERISA Bonds

Above all, our job as an independent insurance provider is to help you navigate a cumbersome system in finding the best fit for your bond requirements. We can help you find your bond needs, provide you with your bond, and help you get it to the party requesting it.

Bonds for all Michigan Cities

Our business insurance policies can be customized for any Michigan city, including, but not limited to:

  • Warren
  • Sterling Heights
  • Clinton Township
  • Macomb
  • Auburn Hills
  • Rochester Hills
  • Dearborn
  • Livonia
  • Troy


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