Initial Premium
For purposes of premium calculation, the term for all bonds is effective from the date the bond is executed, or the date of the contract if earlier, whether work begins immediately or not.

Initial Premium Earned
The initial premium on all Bonds is fully earned, subject however to Final Premium Adjustment.

Anniversary Premiums
An anniversary premium is computed on the value of the unfinished work under the contract.

Final Premium Adjustment
The premium may be adjusted in the event of a change in the Contract Price.

Contract Price
The Contract Price on which the initial premium is computed is the amount stipulated in the contract. The contract price on which the final premium is computed is the whole sum of money or other reimbursement or consideration which passes from the owner to the contractor when final settlement between the two has been made.

On cost plus, fixed fee or percentage contract, the Contract Price should include the contractor's fee or the percentage.

Standard Premiums

Bid Bond Service	Annual premium based on estimated number of instruments to be issued. ($1,250.)
Performance Bond	50% - $5.30 per $1,000 Contract Price
	100% - $7.80 per $1,000 Contract Price
Payment Bond	50% - $5.30 per $1,000 Contract Price
	100% - $7.80 per $1,000 Contract Price
Supply Bond	50% - $5.30 per $1,000 Contract Price
	100% - $7.80 per $1,000 Contract Price
Maintenance Bond	50% - $1.50 per $1,000 Contract Price
	100% - $1.50 per $1,000 Contract Price

If you have any questions about your business insurance, please feel free to email us;
John, Dick or Carol.