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News & Press: HQ News

Bond Update

Tuesday, January 7, 2020  
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Bond Update:

It is with mixed feelings I must inform you that effective 12/1/2019, Business Insurers of the Carolinas will no longer be offering NAPPS Employee Dishonesty Bonds through Travelers Insurance Company/Travelers Bond. We have worked with Travelers Bond Department for over 17 years, and they have offered consistently good service and pricing on the NAPPS Bond Program. However, due to a required filing change in all states, Travelers was looking at a 40% increase in premium to a large majority of NAPPS members who currently carry a Bond, which was unacceptable. Therefore, we agreed to part ways, and fortunately, we were able to find two companies to replace Travelers in offering NAPPS members quality bonding coverage.

First and foremost, we were able to work with Century Surety Insurance Company to now offer the Bonds as an option under the NAPPS Liability Insurance Policy. So, if you purchase Liability Insurance via NAPPS Liability Insurance plan, you can now add Bonding coverage on to your certificate/policy. Going forward, you will not have to complete two renewal applications, as coverage will be on the same certificate/policy. And the best news of all is Century Surety has duplicated the coverage, limits, and pricing as the former Travelers Bond! This means the NAPPS Bond will continue to be the broadest bond coverage form on the market at the best price. It will cover all owners, employees and independent contractors, and it will also remove the required conviction clause. In lieu of a conviction clause, it only requires a burden of proof such as an employee/IC being caught on a nanny cam, or an employee/IC confessing to a theft of your client’s property.

For those of you who currently have the Travelers Bond, but do not have your liability insurance via NAPPS Liability policy, we will be offering a bond renewal via CNA Surety Company. Unfortunately, coverage via CNA’s Bond is not quite as broad as the Travelers policy. The CNA bond will cover owners and employees, but it will not cover independent contractors. In addition, it will also require a conviction clause before it will reimburse. Premiums begin at $100 for $10,000 in coverage and higher limits up to $100,000 are available.

Please note your current bond coverage with Travelers will remain in effect until your next renewal (up to 11/1/2020). If you should have any questions, please feel free to contact our office at 1-800-962-4611.

David Pearsall, CIC, CWCA
Business Insurers of the Carolinas