Category Archives: Surety Bonds

Surety Bonds

Require Surety Bonds?

Bernard Fleischer & Sons Inc. is here for you as we continue to stay connected and move forward as a united industry. Let’s meet this moment together, AS ONE! 

As we recover from the COVID-19 crisis and the states begin to reopen, we want you to know that Bernard Fleischer and Sons, Inc. / BFBond.com has the capacity to handle any surety bond you may have in 48 states across the USA.

What does this mean exactly?… We are positioned to aggressively quote your surety business and give you more resources to work with while putting more commission money in your pocket!

We have been a Surety Bond focused agency for over 50 years and there is no bond too big or too small for us to handle. We can write any size surety bond required, for many different credit profiles, good and bad. We invite you to take advantage of our experience and dedication to our work.

We encourage you to click the link below to visit us. Your trusted bonding resource.


We look forward to being able to be of service. 
Best regards,
 
William Fleischer, CIC
Principal
Bernard Fleischer and Sons Inc. / BFBond.com 

Crime Coverage, Surety Bonds, Uncategorized

Moving Companies: insured, bonded, and licensed?

While searching for a moving company, it is crucial to find a reputable and reliable group of professionals. And in that search, it is not always easy to recognize what the right choice is. Myriad business owners will make the claim of legitimacy and expertise, but how does one separate true quality from all of the fakes? Plenty of moving companies will claim to be insured, bonded, and licensed. But does this oft-repeated phrase actually mean something? We’ll delve into that right here. 

Licensing

What does a “licensed” moving company actually entail? When you want to find a reputable company to handle your move, you want one that has the legal right to conduct business in your local area. In other words – a moving company with the appropriate business license. With that in mind, a truly legal moving company will have a license number to display. 

Take a look at the company’s business cards, trucks, advertising, and website. If there is no license number on display, that might mean the company does not actually have one. Also, if you know their license number, you can search for the company online and see if there are any outstanding complaints made by consumers against them; as you’ll see later on, this is important. 

Bonding

One of the most important aspects of a reputable moving business is whether it is bonded. Considering that, you should avoid any kind of moving business that operates without a moving and storage bond. Most often, this is a type of surety bond that will ensure there is no possibility of theft by the movers who will be handling your office space or home relocation. 

If a moving company is bonded, that means they’ve set aside funds with a bonding company like BF Bond in case there is ever a situation where a customer makes a claim against them. This is a good way of recognizing a legitimate business, seeing as the money in question isn’t controlled by the business itself, but by an external and entirely separate bonding company. 

Number of Complaints

As we can surmise from above, bonding and licensing are definitely traits you should look for in a legal and legitimate moving business. But these legalities aside, it is also important to examine the experiences other customers have had with the company’s services. Using the license number of the company, try to see if there are complaints against them at the FMCSA. 

This is particularly true for interstate relocations; the FMCSA website has a search engine that leads to specific moving-related complaints. You can see the entire history of FMCSA complaints against a company – hopefully, there won’t be any. 

Barring this, seeing what you can find on the Better Business Bureau website is also not a bad idea. This website contains information on both interstate and intrastate movers. And the BBB is definitely an impartial judge, as they are a non-profit entity looking to showcase trustworthy companies for all consumers to see. If the moving company you are thinking of hiring has a BBB accreditation, that is definitely a good sign. 

Moving Reviews

In the process of picking a moving company you can trust, it’s not all about looking at officially filed complaints. A large majority of people won’t go to the trouble of registering their grievances officially. More often than not, they will simply leave an angry review online. With that in mind, you should search the Internet for more customer experiences. For obvious reasons, the reviews section on the company’s website isn’t a good starting place; the moving company is not likely to post any bad reviews of their work.

Instead, look at websites like Yelp or other review aggregates, that are more likely to contain legitimately written reviews and the objective truth. However, even these places may contain some paid-for positive reviews; be on the lookout for fakes when you try to recognize bonded moving companies.

Apart from the digital world of reviews, there is still something to be said for word of mouth. Feel free to ask your family, friends, and neighbors for their experiences, opinions, and recommendations. 

The Moving Estimate

Before you enlist the services of a moving company, you should know that the way it performs an estimate of your household is a great indicator of their professionalism. Before providing you with a quote, every respectable moving company will make an in-person visit and inspection, or at least request a video survey. 

If a company simply offers you a quote right away, through the Internet or over the phone, this is definitely a red flag for a moving scam. A bonded moving company has “skin in the game” via the funds they’ve invested in their bonding, meaning they won’t risk working purely based on your own assessment of the household goods. This is a good rule of thumb – any moving company giving you quotes without their own first-hand account is not to be trusted. 

Also, once the inspection is completed – your movers should provide you with an estimate (along with potential additional charges) in writing. That leaves no room for unwelcome surprises down the line. 

Professionalism

All of the factors we have mentioned until now are important – but they are also technicalities. When hiring a moving company, consumers should also resort to their common sense. After all, there are telltale signs that separate a legitimate, bonded moving company from a malicious or untrustworthy one. For instance, do they have their own business email address and an actual office? Do they belong to a renowned van line? Do their movers have uniforms, and do they use professional moving trucks? Does the estimate seem to be too affordable to be real? Your own gut feeling is important when you’re about to do business with someone as well. 

New Car Dealer Bond, Surety Bonds, Used car Dealer Bond

Get Your Motor Vehicle Dealer Bond Online

Does your business sell cars? At this time of crisis, we are here to help you get back to business. Applying for a Motor Vehicle Dealer Bond is easy, as we’ve simplified the application process for you. You can apply, get approved, and have your bond quickly, often the same day! All done remotely from your smartphone, tablet, or computer.

Most US states require a surety bond as a condition of licensing for automotive dealers. Motor vehicle dealer bonds guarantee a licensed motor vehicle dealership will comply with state regulations. Dealer bonds are required to protect consumers from fraud and other wrongful actions committed by dealerships and their employees. The bond’s exact protection will depend on state and/or local laws.


Motor vehicle dealer bond requirements can include motorcycle dealers, mobile home dealers, car dealers, and others. There could be different requirements for new and used vehicle dealers. Some states require a bond for each dealer location.

If you would like to speak with a live customer service representative to walk you through the process of applying and getting approved for a Motor Vehicle Dealer bond today, call us at 1.800.921.1008 or email Info@bfbond.com with any questions. We are here to help.

Bonds FYI, Crime Coverage, Fidelity Bonds, Surety Bonds, Uncategorized

Workplace Crime costs $50 Billion a year, protect your business with Fidelity Bonds.

There is a hidden risk facing small businesses across the country that often goes unnoticed until it suddenly rips through a firm’s finances: employee theft. It’s a crime that is costing U.S. businesses $50 billion annually, with 7% of annual revenues lost to theft or fraud according to Statistic Brain.

Studies found that U.S. businesses affected by employee theft lost an average of $1.13 million in 2016. Small and midsize businesses were hit disproportionately, representing 68 percent of the cases. Their median loss in 2016 was $289,864.

Despite the alarming levels of embezzlement taking place, it isn’t top of mind for many small-business owners.

When one hears the word “Bonds” it brings to mind an investment. But there are other types of bonds that have nothing to do with investing; they relate to business operations and function similarly to insurance.

Surety Bonds are like insurance. They back up a promise to do something; if the promise is breached, the bond pays off to complete the promise.

One common Surety Bond type is a Fidelity Bond (or Crime Bond). Fidelity bonds provide insurance against loss from employee misconduct, such as theft or embezzlement, which is not otherwise covered by a company’s regular insurance coverage. A bond can provide blanket coverage for the actions of all employees or can be tailored to cover one or more specific employees.

When safeguards like thorough employee screening and careful supervision aren’t enough, fidelity bond coverage to protect against employee theft is recommended. If one or more of your employees are entrusted to handle cash or other valuable assets, a Fidelity Bond can protect your business.

Coverage can include:

  • Employee theft – Stealing merchandise.
  • Forgery or Alteration – Checks, gift cards etc.
  • Theft of Money and Securities –  Registers etc.
  • Robbery of safe, burglary of other property, stones, bullion, etc.
  • Computer fraud, funds transfer, diverting funds to personal accounts.
  • Money orders and counterfeit money.
  • Theft from third parties, on loan, deliveries, on customer’s premises.

 

The cost of Fidelity Bonds: There is no fixed rate for bonds. There are many factors that impact cost, such as the extent of coverage, whether there is a deductible (if allowed), and the surety company that issues the bond. As a rule of thumb, a fidelity bond can cost about ½% to 1% of the coverage obtained.

Surety and fidelity bonds are a risk management tool, it is helpful to discuss your business requirements with an experienced, trusted agent like BFBond/Bernard Fleischer & Sons Inc. We can advise you what coverage is best for your business when traditional insurance doesn’t provide the protection you want or require.

Surety Bonds, Used car Dealer Bond

Motor Vehicle Dealer License Bonds ‘APPLY ONLINE!’

Easily apply for your Motor Vehicle Dealer License Bond or renew your existing Bond.

As part of the motor vehicle dealer licensing process, states require that prospective dealers post a surety bond called a motor vehicle dealer bond to protect the public from any inappropriate or illegal actions on behalf of the automotive dealer.

We know this can be an inconvenience, so at BFBond.com / Bernard Fleischer & Sons Inc. we make the process super easy for busy dealership owners. You can apply, upload documents, and receive your approved bond in as little as a day (depending upon your situation).

Motor Vehicle Dealer Surety Bonds in Every State

The state agency that is in charge of licensing auto dealers (The Dept. of Consumer Services in most cases) should tell you if you need a bond before you begin the application process. If you haven’t been told that you need a bond, it’s a good idea to contact the agency and make sure you don’t need one and learn more about the dealer licensing process in your state.

Generally, obtaining and filing a surety bond is a normal part of the dealer licensing process in every state.

Whether you sell 2 cars per year or 200, BFBond.com / Bernard Fleischer & Sons Inc. can help. Apply for your Motor Vehicle Dealer Bond today by clicking below.

Bid and Performance Bonds, Bonds FYI, Fidelity Bonds, Surety Bonds, Uncategorized

Glossary of Key Bond Terms

Bid Bond:

A type of contract surety bond that
ensures a bidder for a supply or construction
contract will enter into the contract within the
stipulated timeframe if the company wins the bid.
Default results in the obligee (a government
agency, in this case) receiving the difference
between the amount of the principal’s bid and
the bid of the next low bidder or company
who qualifies for the contract, or the amount
of the bond.

Commercial Surety:

A type of surety bond that
can be required by state and local regulators in
a wide variety of situations to protect consumers
and taxpayers. Some of the most significant for
government policymakers include: license and
permit bonds, reclamation bonds, mortgage
broker bonds and subdivision bonds.

Contract Surety:

Surety bonds that involve
construction projects. In the event a contractor
defaults, contract surety bonds ensure funds
are available to complete the contract and pay
subcontractors, suppliers and laborers.

Fidelity Bond:

A bond a business seeks to
protect itself in the event of a loss incurred
because of employee dishonesty or misconduct.
Some states require these bonds for businesses,
such as title insurance companies and credit
unions, that do business with consumers.

License and Permit Bonds:

Statutes and
regulations require these bonds if a company
seeks to obtain a license or permit in a state
or local jurisdiction. If a principal violates its
obligations, this bond pays the obligee or
other third party.

Miller Act:

Law passed in 1935 that requires
performance and payment bonds for federal
construction projects over a designated
amount, currently for contracts over $150,000.

Money Transmitter Bond:

A surety bond that
guarantees money transmission companies
offer services in compliance with state or local
statutes and regulations.

Mortgage Bond:

A type of commercial surety
required by a state or local regulatory agency
for mortgage brokers to become licensed in
that state.

Obligee:

The entity that requires the bond
and is protected if there is a loss or default.

Payment Bond:

A bond given by a contractor
to guarantee payment to subcontractors,
laborers and suppliers for work performed
under the contract.

Performance Bond:

A bond that guarantees
performance of the terms of a written contract.

Premium:

Required by a surety company
from the principal for the issuance of a bond.
Performance and payment bonds come with
a one-time premium that typically equals up
to 2 percent of the contract price.

Principal:

Also called “obligor.” This is the
party who seeks the bond and is bound by the
underlying obligation.
Reclamation Bond: Required by a state
regulatory agency, such as the Department
of Environmental Quality, for a business that
seeks to mine or perform related activities on
public lands. These bonds provide a financial
guarantee that the public lands mined will
be restored.

Subcontractor Bond:

A bond that a general
contractor may require of a subcontractor,
which guarantees the subcontractor will
perform work in accordance with the terms of
the contract and will pay for certain labor and
materials under the contract.

Subdivision Bond:

Developers must get this
bond from a surety if they plan to develop a
plot in a municipality to sell lots or homes.
Local development authorities require
these bonds, which guarantee a developer’s
obligation that the project will adhere to state
and local statutes and regulations, before they
issue a development permit.

Surety:

Third party that issues the bond to the
principal and is responsible for fulfilling the
claim in the event of a default or loss.

Surety Bonds:

A written agreement where a
surety obligates itself to a second party, called
the obligee, to answer for the default of the
principal. In the case of public works contracts,
the obligee would be the state agency and the
principal would be the contractor.

Bonds FYI, News, Surety Bonds, Uncategorized

Renewing your bond? Renew with us, the insurance and bonding agency worth recommending since 1949

businessman with a clock

Many surety bonds are issued on a fixed term but there are some bonds with specific expiration dates set by the obligee, so it is important that you’re aware of when you are required to renew your bond. There are many bonds that expire on December 31st every year so to avoid a lapse in coverage and potential punitive action make sure to check your bond type and its expiration date.

 
It is highly encouraged that all surety bond renewals are done before the current term has ended. That way, there is considerably less chance of any issues that could result in a lapse of coverage. Keep in mind that by waiting until the last minute, if there is a lapse in coverage due to the principal’s failure to renew on time the principal may find themselves without the bond coverage necessary, which may result in penalties.

 
This is especially true for renewals due at the end of the year during the holiday season, when many local government and state offices have more limited hours of operation. We offer surety bonds in all 50 States with a quick and convenient application process to avoid delays. For further information on our surety bond products visit us at bfbond.com, call us at 800.921.1008 or get an application here.

Bond Issues, Bonds FYI, Crime Coverage, Fidelity Bonds, Surety Bonds, Uncategorized

Would a crime policy cover this?

A Strange way of stealing Gold from the Royal Canadian Mint. Via the Anus?!

goldbullion1717128The case against Leston Lawrence, 35, in an Ottawa courtroom presided over by Justice Peter Doody on a number of smuggling-for-cash charges may seem like a joke, but the risk of employee dishonesty is all too real. Mr. Lawrence is accused of theft, laundering the proceeds of crime, possession of stolen property, breach of trust and he was fired from the Mint. Would a Fidelity Crime Bond cover this?

During testimony it was revealed that Mr. Lawrence set off the metal detectors more often than the other employees (Except for the ones with medical implants), requiring manual scans using a metal detecting wand but they never seemed to find anything on him. Investigators say that he used Vaseline and rubber gloves that they found in his work locker to aid in smuggling the cookie sized pucks of gold.

Four of the pucks were found in a safe deposit box owned by Lawrence and he had sold 18 of them for approximately $6,800 each from November 2014 to March 2015. Subsequently, an obviously dedicated security employee tested the idea that the pucks could be concealed in an anal cavity and not be detected by the wand.

Curiously, the mint never noticed any gold missing. After a bank teller noticed Mr. Lawrence had been cashing several checks from a gold dealer and then transferring the money out of the country is when the teller looked up the man’s place of work and alerted the mint to the suspicious activity.

Jaw dropping statistics from the ‘Statistic Brain’ website, trusted research provider for Forbes, CNN, ABC News, and many others reveals that the amount stolen annually from U.S. businesses by employees is $50,000,000,000 and 7% of annual revenues are lost to employee dishonesty and fraud.

Although a minority of employees becomes dishonest, they can rationalize their theft in many ways: ‘the company won’t miss it,’ ‘they’re not paying me enough,’ or the person succumbs to gambling or some other addiction. Protecting a business with a Fiduciary bond aka Crime bond or Fidelity bond is the most effective way of preventing these losses. The definition on a Travelers Insurance policy for Employee Theft reads

“The Company will pay the Insured for the Insured’s direct loss of, or direct loss from damage to
Money, Securities and Other Property directly caused by Theft or Forgery committed by an
Employee, whether identified or not, acting alone or in collusion with other persons”

In addition to the employer being protected from covered losses due to theft and forgery, the exact definition of “who” is covered is defined in the policy, but should include all current or former employees, partners, members, directors, volunteers, trustees, seasonal employees and temporary employees. If the mint had one of these bond policies they would be insured against the conservatively estimated $180,000.00 loss.

Some of the typical exclusions to these policies are accounting or math errors, vandalism, Governmental action, restatement of a profit and loss statement and theft by the employer itself. You cannot steal from yourself; however coverage extends to partners, directors, members, and trustees.

To learn more about fiduciary bond products or any other types of bonds visit our website at www.bfbond.com, our blog at www.bfbond.com/blog , call us at 800.921.1008, or email bonds@bfbond.com with your inquiries or APPLY HERE.

Bid and Performance Bonds, Bond Issues, Bonds FYI, Mechanic Lien, Surety Bonds, Uncategorized

How can small contractors and their customers benefit from Performance Bonds and Surety Bonds?

keep-your-cool-during-a-home-renovationEver watch HGTV (Home & Garden Television) and witness the horror stories left behind by shady contractors? Things like homeowners without kitchens or baths for months. Police recently arrested 45-year-old Cary Grimm on charges of grand theft for doing just that. Customers say the contractor disappeared without completing the work that was he was contracted for.

One couple said their home remodeling project turned into a nightmare after a few weeks’ delay turned into a half a year battle. The complaints which total nearly $90,000 based on over a dozen complaints by customers that came in after Grimm exhibited at a local home show. How could a surety bond aka performance Bond have helped? These bonds ensure a contractor will perform work required in a contract or winning bid.

Bonds provide small contractors and customers with numerous benefits. The surety bond is a form of protection against contractor default due to faulty workmanship, late delivery or not using specified materials. The surety company helps the contractor avoid costly delays and contract disputes if the sub-contract defaults with their portion of the job by non-performance.  Then the surety company will intervene to fulfill the contractor’s scope of work. When a project is bonded, there’s also an added layer of payment protection for workers and suppliers of the contractor.

Surety bonds help level the playing field, and allow a small contractor to compete in the free market, leading to lucrative contracting opportunities. Consumers and businesses feel more secure when hiring a bonded contractor.  A contractor’s bond and insurance are important forms of protection for anyone who is taking on a construction project.

Furthermore; to avoid a Mechanics Lien, a Payment bond is suggested.  Using this Surety Bond as a tool, gives owners assurance that all suppliers and sub-contractors are paid. Also suggested is an Ancillary bond to guarantee that non-material or performance requirements of a contract will be met. An example would be compliance with special terms, laws or regulations.

Call us to discuss your Performance, Bid, Ancillary and Payment bond requirements.

visit www.bfbond.com call 800-921-1008 or email Jward@bfbond.com

bfb_signature

Crime Coverage, Fidelity Bonds, Surety Bonds, Uncategorized

In a former Swing State $5.5M embezzlement case, does your crime bond cover this?

prison-370112_1280

An Indianapolis woman will learn her fate after admitting to six counts of wire fraud and money laundering in a $5.5 million embezzlement scheme.

No longer a swing state (The state typically votes Republican with an exception in 2008) Hoosiers will head to the polls as Kristi Espiritu will be headed to sentencing in U.S. District Court at 10 a.m. on Nov. 8. She worked at Network Storage Inc., a data storage company based in Indianapolis, from 2008 to 2014 as a bookkeeper.

Court records show that with access to the company’s bank accounts she used their money to pay for shopping trips to purchase luxury items such as diamonds, handbags, electronics, furnishings and travel. A common occurrence in employee theft losses. According to a plea agreement reached back in May she admitted to lying to company executives and falsifying books and payroll systems. Even the best managers,  can be over trusting and never spot check or have a system to verify the monies in their bank account to avoid crimes like this.

As a part of a plea deal she agreed to pay $5.5 million in restitution, if she can’t pay that amount before sentencing, federal officials will use asset forfeiture to recover the funds. If the company purchased a dishonesty bond to cover this crime, they would become whole and not be concerned if the employee had the monies to repay the theft.

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Espiritu could face up to 20 years in prison and a $250,000 fine on four wire fraud charges, and 10 years in prison and a $250,000 fine on two money laundering charges. White collar criminals steal through position and influence and quite often get away with their crimes for many years before getting caught.

It is unsure whether Network Storage Inc. had a fidelity bond (aka Crime Bond, Dishonesty Bond) which is a form of insurance protection that covers losses incurred as a result of fraudulent acts by specified individuals, usually insuring a business for losses caused by dishonest acts of its employees. Learn how fidelity bonds and surety bonds from BF Bond provide your growing business with the protection you require. Visit us at BFBond.com to fill out an application or call us at 800.921.1008