Commercial Surety Bond
Do You Need A Surety Bond?
Appraisal management companies and large appraisal firms who are required to register as AMCs have been hit with new licensing requirements in recent years and many states now require a Surety Bond. Even some lenders and other clients now require surety bonds be obtained before they will contract appraisal services.
If you are not familiar with surety bonds, you want someone who understands the coverage and is able to explain how it works.
LIA's knowledge of the insurance and real estate
valuation industries can help provide you with what you
need without incurring unnecessary costs. LIA has been
offering insurance products to the appraisal industry
since 1978 - there is no better match!
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How Does A Surety Bond Work?
A surety bond is a contract between three parties; the
Obligee (the state appraisal board) - the party requesting
the bond; the Principal (the appraisal firm or AMC) - the
party performing the contracted service; and the Surety
(the insurance company) - the party providing the financial
guarantee of the Principal's service to the Obligee. When
the Surety issues a bond it is, in a sense, offering a line
of financial credit towards the specific contract between
the Obligee and the Principal. Should an occurrence arise
that falls within the parameters of a payable claim, the
Surety will pay the Obligee up to the bond amount. The
Surety will then contact the Principal for reimbursement of
the claim just as with consumer lines of credit.
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How Does A Bond Protect Me?
When you purchase a surety bond it guarantees your
contracted performance as a licensee of the state. A
surety bond provides the state appraisal board the
assurance that should your services fail to comply with
the state licensing regulations, any fees or monetary
penalties levied by the appraisal board will be
collectable under the bond. Some states have drafted
their legislation to allow for unpaid appraisal fees to
also be paid by the bonds. Even if the AMC or appraisal
firm fails or goes bankrupt, the Surety will still pay
up to the face amount of the bond.
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LIA's Advantages
LIA's bond program is underwritten by one of the oldest and most successful insurance companies in the United States. We do not charge any broker or processing fees, unlike many other brokers or agents. Premiums are extremely competitive and clients can select a 2-year bond term for a premium discount. Bonds can easily be renewed with payment of a simple renewal invoice.
Insurance Bonds
- Extremely competitive pricing
- Quick response, processing, and issuing
- Available nationwide
- No broker or processing fees
- Broad range of bonds available
- Ability to consider bonds of any dollar amount
- U.S. Treasury Listed
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For 20 years I have not liked paying for E&O Insurance, because I never used it. Now, it has all paid off in the form of your opinion which will keep me out of trouble for the next 20 years. I will continue to recommend LIA as the only provider for professional appraisal E&O Insurance.
How very pleasant to deal with someone who is so efficient, quick, and polite, in an era where those elements are often missing in any business transaction.
Appraiser West Lafayette, IN
Thank you very much for your help. It has been a pleasure working with your company, compared to the other E&O carriers I have had in the past.
Thank You Very Much, this is the kind of response and extra effort that makes your company such a standout!! Thanks Again.
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