What can Bonds do for my business?
Surety bonds are often required by client contracts or local regulations. A surety bond reassures your client they will be reimbursed by an insurance company if your business doesn’t complete a project, breaks the terms of a contract, or fails to adhere to regulations.
Business owners often need a surety bond when they start working with a large client or a government agency, or when they first start working in an industry that requires bonds.
Surety bonds attract clients and fulfill contracts
When you first start working with a client, they may ask you to purchase a surety bond in a specific amount before they'll allow workers on their premises.
Even when it’s not required, a commercial surety bond is a way to prove your small business is reliable. It may give you an edge over non-bonded competitors, which could make the difference between winning and losing a project.
What are the different types of bonds?
There are several common types of bonds. For example, fidelity bonds reimburse clients for employee theft. License and permit bonds guarantee a business will comply with regulations and standards during a project.
Chat with a licensed insurance agent if you're unsure what kind of bond you need.