Bonds Guarantee Performance, Honesty and Financial Integrity

Bonds make it possible for businesses to function because they guarantee performance and honesty to potential customers. Bonding companies provide the deep pockets to financially back up a company’s commitments. As not every person or business can qualify for every bond they seek, the ability to secure a bond can be an indication of a company’s honesty, ability and good financial standing.

Bonds are not insurance, but they have a few things in common. Both bonds and insurance are contracts that make a formal promise to pay for something that hasn’t happened yet. Both pay money in the event of a covered event or occurrence. Both are written by insurance companies and sold by licensed insurance agents.

A bond is a contract with three participating parties: a principal, a surety and an obligee.

• Principal: The principal is a company or individual whose promise to perform is backed up by a bond.
• Surety: The bonding company that agrees to pay when a bonded event takes place is called the surety, instead of insurance company.  
• Obligee: The obligee receives the benefit if something goes wrong.

There are many types of bonds, but they all fall within two categories: fidelity and surety.

Fidelity Bonds
Businesses and financial institutions purchase fidelity bonds to guarantee the honesty of employees. Bankers, accountants, stockbrokers, business office personnel and other employees with the access that could allow them to steal, embezzle or commit other crimes should be covered by fidelity bonds.
 

The Employee Retirement Income Security Act of 1974 (ERISA) requires retirement plans to purchase fidelity bonds. Fidelity bonds guarantee the conduct of plan administrators, trustees, fiduciaries or anyone who has contact with plan assets, cash or financial instruments.
 

A fidelity bond can also guarantee the honesty of service providers, such as carpet cleaners, maid services and home repairmen. As employee behavior is impossible to predict, a bond financially backs the business owner's promise that his employees won’t steal personal belongings, valuables or cash while on a customer’s premises. If an employee does commit a crime while on the job, the bond can pay.
 

Surety Bonds
When a company or person makes a promise to perform certain duties or obligations, a surety bond backs up that promise. The Small Business Administration website discusses how some businesses and government entities require bid bonds to guarantee that a company will do a job if they win the bidding process. After winning a competitive bid, a surety bond can guarantee the company's performance based on contractual guidelines and time frames.
 

State and local governments require surety bonds to guarantee that a business will pay their tax obligations. A Financial Responsibility bond is a type of surety bond that guarantees to the state that a driver has at least the minimum limits of liability coverage in force.
 

Bonds can be complicated, but your independent agent can answer any questions you may have.
We’re happy to assist you. Call Americo Direct Insurance at (214) 374-9997 for more information on Dallas surety bonds.

Why You Might Need to Bond Your Business

With so many reported burglaries and “stranger danger” scares in the news, many people feel very uneasy about letting strangers into their homes. However, electricians, plumbers and contractors — among others — must enter the home in order to perform their jobs. While word of mouth referrals may help customers feel at ease in terms of the professionalism of a business, a surety bond can help give customers the peace of mind of knowing that the money they invest in a project will lead to delivered results.

What does this mean? If you signed a contract to remodel a family’s kitchen, they will expect the job to be completed as agreed upon. If your business breaches the contract or goes bankrupt mid-project, you could be in big trouble. However, being bonded can help sort out similar dire situations.

A bond is essentially a guarantee that the job will get done according to expectations as detailed in the contract. If something goes awry, the bond insurer is there to cover any necessary expenses for the project to be completed.

In fact, bonds are so vital for establishing a trusting relationship between business and customer that many construction professionals are required to purchase a bond before they can obtain a business license. This helps limit the industry to trustworthy professionals, which is beneficial to property owners.

What type of bond does your business need? There are many types available, each designed to serve a specific occupation. Speak with your independent insurance agent to determine the right coverage for your needs.

Prove your professionalism to potential customers. Call Americo Direct Insurance at (214) 374-9997 for more information on Dallas bonds.

You Need Commercial Insurance to Protect Your Business

Large companies hire people to manage the risks associated with the business. However, owners and manager of smaller companies often have to handle risks themselves — along with taking care of the day-to-day issues of running an office and directing staff. Commercial insurance is the ideal solution. What can it do for your business?

1. Property Insurance: Just as with personal property, your business property needs to be protected against loss, liability and damage. Consider if you have any of these types of property that need coverage:
2. Equipment Breakdown Insurance: When you have jobs to do, the last thing you need is your equipment to break down. This type of insurance covers the sudden and accidental breakdown of machinery, boilers, equipment and often electronic equipment — such as computers and phones. Coverage usually includes reimbursement for property that may be damaged as well as expediting expenses — such as faster shipping costs for new parts. The coverage can also cover loss of business due to the breakdown.
3. Employee Theft Coverage: Unfortunately, your employees may not always be trustworthy. This crime coverage will protect you against losses you may experience because of an employee's dishonesty.
4. Accounts Receivable Coverage: In case of loss or damage, financial records of what customers still owe your business may be lost. This type of additional insurance will pay all the amounts owed to your company which cannot be collected because of the lost documentation. Collection expenses may also be covered.
5. Liability Insurance: This type of insurance protects your business assets if your company is sued for something the business did (or failed to do) that caused bodily injury or damage to another person's property. Liability coverage also pays attorneys' fees and other costs for defending against the lawsuit, whether your company is at fault or not.
6. Cyber or Internet Coverage: Many businesses think they have enough firewall and cyber protection in place, but the risks to businesses in this arena are escalating. This type of insurance covers crisis management and hiring a public relations firm if there is a data breach. The insurance can cover the costs of repairing computer systems that have been hacked.
7. Employment Practice Liability Insurance (EPLI): This insurance provides an attorney if a suit is brought against your business for wrongful termination, sexual harassment and other forms of discrimination.

Get the coverage you need. Call Americo Direct Insurance at (214) 374-9997 for more information on Dallas business insurance.

Picking The Right Location For Your Business

Quality, sought after employees tend to be selective with where they choose to work, making it imperative that you do everything you can to make your business an attractive place of employment. One of the ways you can appeal to workers is by choosing a top-notch location. What do employees want out of a workplace? Everyone has different tastes, but some factors are preferred by most individuals. They are as follows.

Facility

People are attracted to visually appealing places. Your building should be attractive, clean and in good repair. This doesn't necessarily mean that you need a brand new, state-of-the-art building. Older buildings can be well maintained and decorated nicely to provide a similar atmosphere. In addition, many studies have shown that the condition of the bathrooms contribute to a person's employment decision.

Parking

Morning commutes are frustrating enough without the hassle of searching for a parking spot. Your building should have ample parking, which also helps prevent tardiness. For some businesses, assigning parking spots is an ideal solution to ensure that everyone has a place nearby.

Public Transit

Some individuals prefer using public transportation to get to work. A workplace located near bus/train stops opens up more commuting options.

Neighborhood

Lunch breaks are the perfect time to grab a bite and run an errand or two. A workplace located near restaurants, grocery stores, dry cleaners etc. provide immense value to your employees, who can save valuable time in the evening by getting a few things done in the afternoon. Many people also enjoy having a gym close to the office for morning or evening workouts.

The right location should be paired with the right coverage. Call Americo Direct Insurance at (214) 374-9997 for more information on Dallas business insurance.

Keep Your House Environmentally Fit With These Composting Tips

If you’re looking to live a more environmentally conscious lifestyle, or if you’re interested in gardening, you may have read about composting. Compost is a nutrient-rich soil additive created when plant and animal matter decomposes. With a little help from waste-conscious humans, the process of composting at home can be a great way to educate whole families on how to live a more “green” lifestyle.

According to statistics from the United States Environmental Protection Agency (EPA), household yard clippings and food waste make up somewhere between 20 and 30 percent of the waste Americans annually throw into landfills. Once there, these organic materials take up landfill space and release greenhouse gases such as methane. One way to help keep these materials out of landfills is to compost this waste at home, rather than throwing it away. The EPA provides a list of items that you can compost, and some you shouldn’t.

Composting Payoffs

Organic material recycling has a number of rewards for your yard, greater community and overall carbon footprint. By dedicating a little time and space to proper composting, the EPA says you can start enjoying the following benefits:

- Keeping items out of landfills: This is probably the most well-known effect of composting. As mentioned above, anything you compost instead of throwing away saves space in your local landfill.

- Soil enrichment: By adding fresh compost to your garden, your soil becomes enriched with the nutrients shrubs, plants and flowers thrive on to grow strong. In addition, it enables moisture to reach thirsty roots. And, by keeping your yard and garden healthy, compost acts as a natural guard against soil erosion.

- Reduction in added chemicals: When you regularly add compost to your soil, you reduce your dependency on chemical lawn fertilizers and pesticides. Think about this win-win situation: You add scraps you were throwing out anyway to a compost pile, and — voila — you simultaneously save money and your garden from unwanted chemicals.

- Healthy bacteria production: Another byproduct of composting is the creation of good fungi and bacteria. These essential ingredients to the decomposition process encourage the microorganisms necessary to sustain long-term garden and soil health.

Composting Methods

There are various methods of composting, but for home use, two are likely the most practical:

Soil microbes: In this method, you moisten your materials and put them in a pile or bin, in a dry, shady spot near a water source, and wait for the items to decompose. The EPA says this can take anywhere from two months to two years.

Vermicomposting: If you’re not a fan of worms, this probably isn’t the method for you. In vermicomposting, you put red worms into a covered box lined with leaves, newspaper or dirt, according to the EPA. The red worms eat fruit and vegetable scraps you put into the container, and they leave behind droppings that the EPA says can be used as a natural plant food. Because this method takes less space than the compost piles or bins needed for soil microbes, people who live in apartments may opt for vermicomposting.

Where to Compost

If you’re using the microbe method, turning yard and kitchen waste materials into compost is simply a matter of providing the right space, air and moisture. However, depending on where you live, the amount of waste you’ll be composting and how far you plan on traveling to add items to the compost pile, you have three basic composting options:

- Outdoor piles. An easy way to begin composting is to simply start a compost pile in a shady spot in your yard. Just add yard clippings and approved table scraps in alternating layers. The EPA says you can surround your pile with chicken wire or nail wood beams together to create a small fence.

- Outdoor bins. The EPA says that a compost pile may work for yard waste, like dead leaves, but if you’re going to compost food waste, you should use a bin in order to keep small animals from raiding your compost bin for dinner. You can either buy a bin or build your own; just remember: Any bins you dedicate to composting must have holes or openings to allow for air movement, to help avoid any unpleasant smells.

- Indoor bins. If you don’t have space outdoors for a compost pile or bin, you may want to consider indoor composting. Like an outdoor bin, you can either buy a special indoor composting bin or build your own, according to the EPA, But, if you’re keeping your bin indoors, it’s even more important to make sure you maintain it in order to help avoid rodents and odors.

For vermicomposting, you can either buy or make a bin for your red worms. The University of Nebraska-Lincoln says you can turn an old drawer into your composting bin, or use a plastic storage container, making sure the lid loosely covers the bin and is not tightly latched. You’ll need to line your bin with moistened bedding for the worms, such as shredded cardboard or paper.

Now that you’ve selected and set up your compost pile or bin, it’s time to start composting!

For information about Dallas home insurance, give Americo Direct Insurance a call at 214-374-9997. 

What You Might Not Know About Renters Insurance

Many renters overlook buying renters insurance because of they believe it to be an unneeded cost. However, here are five things to consider about renters insurance that you might not have been aware of before:

1. Landlord is not responsible: Your landlord is not responsible for the items that you have inside of your apartment. This is why many landlords require that their renters have renters insurance. With insurance, you're covered in the case of fire or theft. Without it, your losses must be paid out-of-pocket.
2. Not all policies are the same: You can personalize your insurance coverage to meet your needs. Coverage amount can be anywhere from $10,000 to $100,000. Some policies will replace lost items from a fire or theft and some will just give cash for the total cost of the items lost. Ask your agent about the details of your policy.
3. Affordable: Most of the time, renters insurance is avoided because people believe it will cost much more than what it's worth. However, the average amount for having renters insurance is about $15 to $30 per month. The cost will vary depending on location, as well as the type of property you live in.
4. It is worth it: You might think that all of your items are not worth covering. However, if your computer, your phone or all of your clothes are lost, think about how much you would have to spend to replace it all. Having renters insurance is definitely worth saving your money on replacing every single item in your possession.
5. Extra protection: Renters insurance can also provide liability coverage. This means if someone is hurt in your apartment, the medical and legal costs can be covered.

Renters insurance is definitely worth having. Call your agent to get started today!

Learn about your coverage options. Call Americo Direct Insurance at (214) 374-9997 for more information on Dallas renters insurance.

How to Lower Your Auto Insurance Premium

Paying for insurance that you don't use often can be irritating, but it's very important for the times that you do need to file a claim. However, to soften the blow to your budget, there are plenty of ways you can reduce your auto insurance premium. Your agent can explain them in further detail, but here are five ways to save to get you started.

1. Policy bundles: By bundling your personal insurance policies together with a single insurance company, you can save up to 15 percent across-the-board on your insurance portfolio. It's a win-win; insurers get more of your business and you save money on the coverage you need. The most popular bundle in America is auto, home and life, but you can add virtually any policy to your bundle.
2. Fewer payments: Each time you make a premium payment, you will most likely be charged a processing fee. Even though these fees may only be a few dollars, they add up over time. To minimize what you spend on fees, simply make less payments. If you can, pay your entire premium for the year all at once. If not, try biannual or quarterly payments as opposed to monthly. You'll save in the long run.
3. Safe drivers: Safe drivers save money. It's that simple. If you maintain a driving record free of tickets and accidents, your premium is likely to be lower than a driver who displays reckless behavior. Insurers calculate premium prices based on the risk level of each driver, so don't give them a reason to classify you as a risky investment.
4. Good credit score: A person with a good credit score is typically more responsible than a person with thousands of dollars of debt racked up. So, similar to the point above, individuals with good credit are viewed as a less risky investment and, therefore, are likely to pay less for car coverage.
5. Discount options: Most insurance companies offer a variety of discounts to good students, loyal customers, seniors, military personnel, teachers and more. You may not be told upfront, but you can always ask your agent if you qualify for a discount on your auto insurance.

We’ll help you save on coverage. Call Americo Direct Insurance at (214) 374-9997 for more information on Dallas auto insurance.