Depending on the type of work your business does, you may want or need to get a bond. Contracting companies, as well as manufacturers and suppliers, typically purchase bond insurance to protect their clients and themselves. Bayside Insurance offers bond insurance for the Upper Eastern Shore area.
What Is Bond Insurance?
A bond is defined as a contract among at least three parties:
- The obligee – the party who is the recipient of an obligation
- The principal – the primary party who will perform a contractual obligation
- The surety – who assures the obligee that the principal can perform the task
Bonding is just another form of protection. In the event that a homeowner is not satisfied with the workmanship of a licensed contractor for a home project, bonding gives homeowners the opportunity to be reimbursed or acquire necessary funds to hire another contractor to finish the job.
Do I Need Bond Insurance?
A fidelity bond or surety bond can help protect the interests of your growing business. As a small business owner, you should take these precautionary measures to protect your assets at all times. Having your company “bonded” will also give your business more credibility and gain trust with your clients.
If you are located in the Upper Eastern Shore, Maryland area and would like more information on bond insurance, request a free quote today! One of our professional insurance agents would be glad to help you.
Types of Bond Insurance
There are two main types of bond insurances, surety and fidelity. Both offer different forms of protection.
A surety bond is designed to guarantee a businesses’ integrity, performance, and financial responsibility to finish said job. It also ensures that the company will follow all laws and promises in the contract. The two main types of surety bonds that Bayside offers are:
The contract bond guarantees the contractor’s work, completion time, and price. Bayside insurance offers several different types of contract bonds including:
- Performance Bond
- Maintenance Bond
- Bid or proposal
- Bond Payment Bond
License and Permit Bonds
A license or permit bond insures that a business obeys with the appropriate license and permit regulations. License and permit bonds offered by Bayside Insurance are:
- Home Improvement Bond
- Gasoline Tax Bond
- Real Estate Broker Bond
- Liquor and/or Beer Bond
- Auctioneer Bond
- Plumbers Bond
- Electricians Bond
- Motor Vehicle Dealers Bond
- Fuel Dealer Bond
A fidelity bond offers insurance against loss from any employee misconduct. As a business owner, you should check to make sure that your regular business insurance covers theft or embezzlement. If it does not, a fidelity bond will cover such events.