Surety Bonds

What is a Surety Bond?

A bond guarantees the performance of a contract or other obligation. Bonds are three party instruments by which one party promises a second party the successful performance of a third party.

1 The Surety–Is usually a corporation which determines if an applicant (principal) is qualified to be bonded for the performance of some act or service. If so, the surety issues the bond. If the bonded individual does not perform as promised, the surety performs the obligation or pays for any damages.

2 The Principal–Is an indiVidual, partnership, or corporation who offers an action or service and is required to post a bond. Once bonded, the surety guarantees that he will perform as promised.

3 The Obligee–Is an individual, partnership, corporation, or a government entity which requires the guarantee that an action or service w1ll be performed. If not properly performed, the surety pays the obligee for any damages or fulfills the obligation.


CNA Surety provides commercial and contract surety bonds in all 50 states through a combined network of over 37,000 independent agencies. The Commercial surety market includes numerous types of bonds categorized as court judicial, court fiduciary, public official, license and permit, and many miscellaneous bonds that include guarantees of financial performance. CNA Surety Companies also write fidelity bonds, which cover losses arising from employee dishonesty and Errors & Omissions liability insurance. Contract bonds guarantee the performance of obligations covered by a written agreement between two parties. The most common types include bid, performance and payment bonds.

CNA Surety writes more bonds than any other surety company in the world. CNA Surety has an “A” rating from A.M. Best. A survey of producers has voted CNA Surety as the best overall surety carrier in the country.

CNA Surety Michigan Most Common Instant Issue Bonds

  • License & Permits – All local city/state/county, etc. $25,00 or less
  • Lost Title Bonds – $25,000 or less
  • MI One Day Liquor Bonds
  • Beer fest Bond
  • MI Notary Bonds (includes $10,000 E & O Coverage)
  • Employee Dishonesty Bonds – 25 Employees or Less
  • Janitorial Service Bonds – 25 employees or less
  • Individual Public Official Bonds – $100,000 less
  • ERISA/Pension Trust Bonds – $200,000 or less
  • Nursing Home Resident Trust Funds Bonds – $50,000 or less
  • Probate Bonds – $50,000 or less ($10,000 or less for minors)
  • MI Registered Scrap Tire Hauler Bond
  • DMEPOS Medicare Bond
  • MI Mortgage Loan Originator – $10,000 ($25,000 credit is ran instantly)
  • MI Mortgage Vehicle Dealer Bonds New Franchised Dealerships
  • MI Motor Vehicle Dealer Bonds Used Dealership with approved credit
  • Landlord Security Deposit Bonds – $75,000 or less

If you have questions or would like additional information regarding CNA Surety, please ACOVA Insurance Agency at (313) 388.0100.