Talisman Casualty Insurance Company Elucidates on the Surety Program that They Provide
December 12, 2022 at 15:49
Carson City, Nevada -
Talisman Casualty Insurance Company LLC, a protected cell captive insurance firm based in Las Vegas, Nevada, wants to share information about its surety program, which allows them to offer surety bonds based on the captive insurance model. A surety bond or surety is a promise made by a guarantor or surety to pay one party, which is the obligee, a particular amount of money in the event that a second party, which is the principal, fails to fulfill a particular obligation, such as the completion of the construction of a house as stated in a contract. Meanwhile, in the captive insurance model, the relationship between the surety and the principal is usually much closer compared to other forms of insurance.
A spokesperson for Talisman Casualty Insurance says, “In the captive insurance model smaller numbers of principals are participating in the coverage capacity so the relationship can be more personal and the design of the bonds can be flexible to meet the needs of the modern business environment and evolving risk which require more flexibility. Access to surety credit can seem like an unstable marketplace where availability and willingness to bond contracts is unpredictable. Managing risk in business is much more challenging if bonded contracts are a key to staying competitive.”
They offer three kinds of surety bonds: payment and performance bonds; compliance and licensing bonds; and court and legal bonds. All of these bonds are underwritten just like general credit and the review will typically need skill and financial qualification when performance is being bonded. With this surety program, the surety is akin to a cosigner who lends credit in exchange for a premium that is less than the rate offered by a commercial lender. The surety doesn’t expect to suffer a loss from the transaction. Thus, in case there is a loss, they will want to be reimbursed for that loss.
The payment and performance bond is typically used in the construction industry as a way to protect the owner of a property to make sure that the contractor will finish a construction project as specified in the contract and that the contractor will ensure payment of all suppliers and subcontractors. Should the contractor fail to finish the project based on the specifications indicated in the contract, the bond will be used to fund the completion of the project and/or perform any repair works whenever necessary. Likewise, if the contractor fails to pay the suppliers and subcontractors, the bond will be used to pay them.
The compliance and licensing bonds offered by Talisman Casualty Insurance are typically used as a requirement for contractors and other professionals who are applying for a license. This means that there are several statutory requirements for this kind of bonds. This type of bond serves as a guarantee that the party that wants to get a license will be complying with all relevant laws and regulations. In addition, these bonds will also offer indemnity guarantees to third parties who suffer from injury or damage because of the obligor’s activities as indicated in the license or permit.
And lastly, Talisman Casualty Insurance offers various kinds of court and legal bonds. A legal bond serves as a guarantee that a particular person will fulfill certain obligations, such as appearing in court. If the person fails to fulfill such an obligation, they will need to pay the other party in the contract a particular amount or forfeit the money on a deposit.
Talisman Casualty Insurance Company offers an alternative risk transfer for property and liability insurance. All of their insurance policies and bonds are fully licensed, authorized, and regulated insurance transactions that are in compliance with Nevada state laws. In particular, Talisman is a protected cell captive insurance company and provides insurance policies and bonds to principals who take part in the captive by becoming a shareholder and consenting to a participation agreement. Participants can benefit from the regulated structures and international reinsurance markets with the advantage of possibly reducing their insurance costs and expanding their coverage based on their business goals.
Those who have some questions about the Talisman Casualty Surety Program can check out the Talisman Insurance Company website or contact them on the phone or through email.
For more information about Talisman Casualty Insurance Company, contact the company here:
Talisman Casualty Insurance Company
7881 W. Charleston Blvd, Suite 210 Las Vegas, NV 89117