Surety & Fidelity Bonds

Whether you’re fulfilling a contract requirement, meeting a licensing obligation, or protecting your business from employee dishonesty, the right bond gives your clients and partners confidence in your company. At Goggans Insurance, we help businesses in Fort Payne and across Northeast Alabama obtain the bonds they need — quickly and without the runaround. woman signing on white printer paper beside woman about to touch the documents

Ready to get bonded? Contact us below or call any location to get started.

What Are Business Bonds?

A business bond is a financial guarantee that protects one party if another fails to meet a specific obligation. Unlike traditional insurance — which protects the policyholder — bonds are primarily designed to protect the party requiring the bond (such as a client, government agency, or project owner) if the bonded business fails to perform as agreed or acts dishonestly.

Bonds are commonly required by government agencies, project owners, and clients as a condition of doing business. In some industries, being bonded is a licensing requirement. Even when not required, carrying bonds can set your business apart and help build trust with the people you serve.

There are two primary types of bonds most businesses encounter: surety bonds and fidelity bonds.

Surety Bonds

A surety bond is a three-party agreement involving:

• The principal — the business or individual purchasing the bond
• The obligee — the party requiring the bond (such as a government agency, client, or project owner)
• The surety — the insurance or bonding company that underwrites the bond

The bond guarantees that the principal will fulfill their contractual or regulatory obligations. If the principal fails to meet those obligations and a valid claim is filed, the surety may provide financial compensation to the obligee. The principal is then typically responsible for reimbursing the surety for any claims paid on their behalf.

Common types of surety bonds include contractor license bonds, performance bonds, payment bonds, and permit bonds. Specific requirements vary by industry, project type, and jurisdiction.

Fidelity Bonds

Fidelity bonds are a form of business insurance protection that may help cover financial losses resulting from dishonest acts committed by employees or contractors. There are two main types:

• First-party fidelity bonds — May cover losses your business suffers due to employee dishonesty, such as theft, fraud, or forgery committed by your own employees.

• Third-party fidelity bonds — May cover losses caused by dishonest acts of contractors or individuals working for your business on a contract basis, which can be especially important for businesses that send workers into clients’ homes or facilities.

Fidelity bonds can be a valuable layer of protection for businesses that handle client funds, sensitive data, or have employees working in client-facing environments.

Coverage terms, bond amounts, and eligibility vary by bond type and carrier. Please speak with one of our agents to determine which bonds are appropriate for your specific business.

How to Get Bonded with Goggans Insurance

Our team understands the bonding process and can help you identify exactly what’s needed, whether you’re getting bonded for the first time or renewing an existing bond.

Here’s how to get started:

• Call us at any of our locations to speak with an agent
• Submit a quote request online using our quick quote form below
• Stop by our office in Fort Payne AL, Rainsville, AL, Scottsboro AL, Centre AL, Boaz AL or Jasper TN.

No pressure, no obligation — just straightforward guidance from a local team that knows what it takes to run a business.