Ohio, home to the Pro Football Hall of Fame and Cedar Point, is a great place for young adults and families to explore or live. Akron, Cincinnati, and Dublin are the best places to live in Ohio.
This state is consistently ranked as one of the best for business and provides many benefits to residents, including a low cost of living, excellent schools, and ample recreational opportunities.
Many of Ohio's 965,000 small businesses require business owners' policy to protect themselves from accidents and other mishaps involving their business. This type of policy and business insurance typically require specialized coverages and liability limits that are not typically covered by personal policies.
Whether they own a landscaping service in Cleveland or a construction company in Columbus, each receives customized coverage to meet their specific needs aside from property damage liability coverage.
Many professionals, contract workers, and businesses doing business in Ohio are required by the state, county, or city regulatory authorities to maintain surety bond coverage to be properly licensed.
General contractors, mortgage brokers, public adjusters, and title agents, for example, must have surety bonds in Ohio. Besides contractor license bonds, the state commerce and insurance departments set bond coverage amounts in Ohio.
Contractor license bonds are set at the local level and vary greatly in size depending on the city or county in which the work is performed.
Among the minimum requirements, the government requires many Ohio businesses to obtain Ohio surety bonds to protect their customers and clients. Bond amounts covering the contractor's customers can range from $10,000 to more than $100,000.
Surety bond applicants with excellent credit can pay as little as 1% of the total bond amount. So, if the bond amount is $10,000, the premium for the term of the bond is only $100.
Even with average credit, applicants with a financial responsibility requirement frequently receive rates ranging from 2% to 5% of the bond's full coverage amount. A low credit score may result in a 15% increase in your premium.
Among other types of bonds, it's important to know that a cash bond is a sum of money held as a guarantee of payment. When bailing someone out of jail, the simplest option is to post the entire amount in cash.
If you post cash bail, the bond court holds the entire amount to ensure you appear for your court date. Cash is the payment guarantee, and it is very straightforward. If you do not appear in court, they will keep your money.
The court will return your cash if you show up and do not owe any money. You will not be required to complete any additional paperwork or calculations.
A surety bond is a little more difficult to understand. A surety bond is defined as follows by the US Small Business Administration:
Thus, a surety bond is a loan you receive to post bail. The contractor in the case of a surety bond is a bail bondsman. When the bail bondsman meets with you, he agrees to post bail on your behalf.
The bail bondsman then contacts the surety company they work for to borrow the money needed to post your bail.
Here are some questions people who want bonds insurance constantly ask:
The surety firm determines the bond premium or portion of the total bond amount that a contractor must pay to post a bond. In many locations in Ohio, the full bond amount required might range from $5,000 to $25,000. However, contractors are not required to cover the total amount.
Most license bonds are only good for a year before needing to be renewed. Your professional license will typically be revoked by the State or Federal agency that granted it if the bonds are not renewed.
Bonding can be a costly process. Many surety providers enable businesses to apply for a surety bond online while describing their circumstances. Once the company has been given the go-ahead, it can submit the indemnification agreement and make the bond payment online.
Usually, the surety will send you a cancellation notice. This will let you know when your surety bond's terms expire and that the surety is no longer obligated to cover any claims made against the bond once the term has passed.
The time until a bond matures and how long its owner will continue to receive interest payments. The bond's face value, or par, is returned to the owner when it grows. If the bond has a put or call option, the term to maturity may change.
Knowing the different types of insurance and their coverages is important in getting the right policy for you if you want to cover your financial responsibility and get your business's needs insured. Here are some of the most common types of insurance:
Reliable and comprehensive coverage for business owners remains competitive in small and large enterprises. However, finding the right business owner's policy for your business vehicle and the right insurance agent or insurance company can make a big difference.
To learn more about bonds insurance and other liability coverage for your business in Ohio, read through our blogs at Assured Standard and grasp what smart long-term business and insurance solutions could look like.
