Differnce Between Surety Bonds and Insurance

Address: Los Angeles, California, United States 91303
Phone: +1 800-452-7121
Website: J.R. Olsen Bonds & Insurance Brokers
Category: business

Description: Perhaps the most distinguishing characteristic between traditional insurance and suretyship is the Principal's guarantee to the Surety. Under a traditional insurance policy, the policyholder pays a premium and receives the benefit of indemnification for any claims covered by the insurance policy, subject to its terms and policy limits. Except for circumstances that may involve advancement of policy funds for claims that were later deemed to not be covered, there is no recourse from the insurer to recoup its paid loss from the policyholder. That exemplifies a true risk transfer mechanism. For more details visit jrolsenbonds.com.