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Please note: J. Michael Low is a former AZ Director of Insurance, and is the founding partner and an attorney with Low & Childers, PC of Phoenix, AZ. He is still practicing full time and has agreed to help Low & Johnson on certain coverage and claims issues relating to insurance. He is not issuing legal opinions or legal advice on behalf of Low & Childers. Mr. Low is a licensed property and casualty producer in the state of Arizona.
How many times do you see the phase ‘licensed and bonded’. We often have people asking to be bonded, when what they actually need is a liability insurance policy. There are 2 types of bonds – Fidelity and Surety.
Fidelity bonds provide coverage for an employer if an employee steals either money or goods. This protects the employer from this exposure, but not from an allegation or lawsuit by a third party.
Surety bonds provide a guarantee of performance of either work done or payments owed. This protects the person requesting the bond, not the person that is required to post the bond.
Liability Insurance protects policyholder in the event that they are sued or have claims made against them for Bodily Injury or Property Damage. This is the key coverage for any business to have in place.
Any questions please give me a call or e-mail. Also, we keep the insurance tips newsletter an various topical insurance issued posted on the Low & Johnson web site www.lowjohnson.com.