COMMERCIAL INSURANCE
Bond Insurance

About Bond Insurance
Bond insurance is an unconditional and irrevocable guaranty of principal and interest on mortgage-backed securities. BLG has expertise in insuring investment- and non-investment-grade securities, including those in the following categories:

• Net Interest Margin Securities
• Home Equity Bond Insurance
• Prime and Jumbo Retail MBS

Bond Insurance adds several features to municipal bonds that enhance their value:

• Safety-  With Bond Insurance, an investor has a backup source of payment to rely on if the primary payer, isn’t able to meet its obligations.
• Quality- Insured bonds receive the highest rating available automatically.
• Ratings strength- Historically, Municipal bond insurers are highly regulated by state insurance departments and will have reaffirmed their Triple-A ratings at least once a year.
• Liquidity- Large volumes of Triple-A rated, 100%-insured securities are traded every day. Investors who wish to sell their insured bonds before maturity will typically find a market for their highly rated securities.
• Yield- Triple-A insured municipals typically offer slightly higher yields than uninsured securities.
• Opportunity for even higher earnings- There are several types of revenue bonds and structured issues—that pay higher yields than conventional general obligation bonds.  Many investors are unfamiliar with such securities. By guaranteeing timely payment of interest and principal, insurers allow investors to purchase bonds with confidence.
• Preselection of issuers and issues-  Most underwriters will rigorously analyze the issuer and the specific issue.
• Surveillance- The performance of every insured issue is monitored to final maturity.

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Annual Review
At BLG, we strongly recommend you review your insurance coverage at least once a year. Your commercial situations may have changed.  Or, maybe you’ve made a few major purchases throughout the year that should have extra coverage.  Inflation or depreciation can affect the value of your properties and their contents.  Call BLG now to review, renew or establish your customized insurance policy that fits your world.