Have you ever heard the expression, “He knows just enough to be dangerous?”  Or, and perhaps even more importantly, “What you think you know can hurt you?” Let me give you a quick, pragmatic example:  I recently received an Invoice from one of the nation’s top magazines (3.5 million circulation) and twice (that’s right, twice!) they used the following statement:  “To insure you receive your issues on time, please send your payment promptly.”  Now, you may be looking at that and think, “What’s wrong with that?”  Well, the “thing” that is wrong is:  To “insure” means to purchase a contract, pay a premium, and then collect a settlement if something happens to whatever is insured.  What they wanted to say was “ensure,” which means “to make certain that something happens.”  So, both the author and proof-reader for that major publication has allowed it to look a little foolish, at least in my eyes.  You may be wondering what that has to do with UNDERSTANDING BONDS AND YOUR PHOENIX, AZ BOND AGENT. Well, there may be some terminology in your Bond’s Contract that you only think you understand!


Bonds, like so many other things in life, should be fully understood before they are purchased,” Jim Bivona of Bivona Insurance Group, LLC, an Independent Insurance Agency that services the Phoenix Metro area regarding Insurance including Phoenix, Scottsdale, Glendale, and Peoria Arizona to name just a few, offered with a degree of resignation in his voice.  “That’s why we take the time to explain everything involved with Fiduciary Bonds to clients when we make our sales presentation to them.”

While there is no way we can share all of the germane terms here, there are several we would like to feature:

  • Agent: Only licensed, Property & Casualty insurance agents can solicit and sell surety bonds. Surety agents are licensed insurance agents who specialize in surety bonds. Most surety agents operate as independent agents, representing several different Surety Companies.
  • Bond: A contractual guarantee made up of three parties, each bound to the other for a specific business purpose. Differs from insurance.
  • Bond Term: May be a specific period of time or continuous until terminated by one of the parties to the bond.
  • Fiduciary Bond: Guarantees that an individual or organization will safeguard assets of another that have been placed under their control. Often also referred to as Administrator Bond, Executor Bond, Guardian Bond and Judicial Bond.
  • “Underwriting”: A term borrowed from insurance this is a process where the Surety investigates the Contractor’s Character, Capacity and Capital to determine if the contractor is qualified, by the Surety’s standards, to undertake the project. This process is very much like qualifying for a loan, line of credit or Mortgage.

As you can see, UNDERSTANDING BONDS AND YOUR PHOENIX, AZ BOND AGENT certainly is not something you want to ignore if you ARE, in fact, intent on making sure your Business Protection is adequate and complete!  As a result, you should contact Jim Bivona at 623-256-1000 with any questions, and he will be happy to discuss this concept with you in greater detail, and suggest some ways you may be able to improve your Business Coverage.


To learn more about the BIVONA INSURANCE GROUP, LLC go to www.bivonainsurance.com.


(To learn more about this issue, check out “IMPORTANT INFORMATION REGARDING BONDS”)