A surety bond is not the same thing as an insurance policy. Instead, bonds are designed to help guarantee that a principal individual act with integrity, financial responsibility, and honesty while complying with contracts or relevant laws. Even though bonds are not exactly the same thing as an insurance policy, they make up an important component of business operations for individuals in many industries throughout the country.
You may be required to obtain a surety bond for your business operations. These bonds can help to guarantee payment for utility bills or state sales taxes. As a contractor, you may be required to post a permit or license bond to guarantee your work in order to meet the licensing requirements in various municipalities.
Attorneys, too, may have a need for bonds to guarantee their performance while distributing estate assets. Finally, even notary publics are required to post bonds in the vast majority of states.
As a business owner, you may be interested in a blanket bond insurance policy. More often than not, these policies protect all employees unless someone has been excluded, providing bonds in the same aggregate amount for all. Premiums are based on the total number of all employees in the amount of coverage requested in addition to the business activities of the insured person and the total amount of the deductible.
Since bonds are so reliant on local and state laws, it’s advisable that you work directly with an experienced insurance professional to determine the right solution for you. There are a wide range of commercial bonds available, and you can discuss what’s necessary for your business to create a customized solution.
Getting help from an insurance agency will give you the peace of mind that you have all of your paperwork in order and that you have protected your business fully. To learn what kinds of bonds are required or recommended for you, get a quote today.