Question about getting bonded

[wicked8pb]

I am in Property Management and want to get bonded, preferably up to 1million dollars. I have a clean background and also would like to know if you can have a single policy for two different people. Am I even looking in the right place?

[Admin]

Unfortunately, it is not quite as easy as just getting "bonded". Most people see a locksmith or janitorial company using the text "insured and bonded" in their advertising material and assume it is a good idea for them as well. This type of bond is called a fidelity bond. This class of business is considered an insurance product, not a true surety bond. They would pay out in the event that someone within your company was stealing and was convicted of doing so.

Really what you have to ask yourself is, what do you want the bond to guarantee?

[wicked8pb]

Originally Posted by Admin

Unfortunately, it is not quite as easy as just getting "bonded". Most people see a locksmith or janitorial company using the text "insured and bonded" in their advertising material and assume it is a good idea for them as well. This type of bond is called a fidelity bond. This class of business is considered an insurance product, not a true surety bond. They would pay out in the event that someone within your company was stealing and was convicted of doing so.

Really what you have to ask yourself is, what do you want the bond to guarantee?

I want to place insurance on the property managers in the event anything was taken from the property, up to a million dollars

[Admin]

The instrument you are looking for would best be handeled by your regular property and casualty agent.

[wicked8pb]

Originally Posted by Admin

The instrument you are looking for would best be handeled by your regular property and casualty agent.

a bond to cover my employees if something was taken from the property by the renters? Here's the scenerio:
-I have a property worth 1 mil and another 1 mil worth inside the prop
-I have insurance covering the property to an adequate amount
-I have my two property managers that care for the property
-If a 10k lamp were to end up missing, my insurance would be able to write me the check but my rates would go up.
-My insurance company could possibly go after my managers for the loss b/c the fault was on their watch.
-I want to cover my managers with a bond so that 1. my insurance rates are reduced and 2. my managers don't have to worry about being attacked by my insurance company in the event (although unlikely) something happened.

Does this make sense? Thanks again for the education.

Respectfully sent

[Admin]

Unlike surety bonds, a fidelity bond actually is an insurance product. You would be better off discussing your insurance needs with your P/C agent, as our agency only offers fidelity up to $100K as a convenience to our clients.

[wicked8pb]

Originally Posted by Admin

Unlike surety bonds, a fidelity bond actually is an insurance product. You would be better off discussing your insurance needs with your P/C agent, as our agency only offers fidelity up to $100K as a convenience to our clients.

if I were to only need a 100k on insurance for my property managers, a fidelity bond would be the way to go, am I correct?

[Admin]

That would depend on specifically what you would like to insure. If you would like insure against the property managers embezzling assets then a fidelity bond would be the correct choice.

[Admin]

The topic "getting bonded" has been widely discussed enough that we decided to make a page on our parent site discussing what it means to be bonded.

See: Information On Getting Bonded & Free Online Quotes and Getting Your New Business Bonded