termite bond

termite bond

An insurance policy issued by a pest control company. There are two varieties. The most common is a retreatment bond,which will pay all costs and expenses of eradication and retreatment if termites are discovered. Less common today is the repair and retreatment bond, which will also pay for any repairs necessitated by termite damage.Virtually every bond today excludes Formosan termites from their coverage. The Formosan termite is a particularly voracious termite that exists in large colonies and eats practically anything.

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However, these costs were covered by termite bonds that still have to reimburse Vicar's $1 million, which management expects to receive prior to year end.