A surety bond is not the same thing as an insurance policy. Instead, bonds are designed to help guarantee that a principal or individual will act with integrity, financial responsibility, and honesty while complying with contracts or relevant laws.
Business service bonds (also referred to as surety bonds) serve as a protection on the services that you guarantee to clients as a business. Becoming bonded shows that you’re a trustworthy business that has your customer’s best interests at heart.
There are many different types of bonds, and each of them are written by a third party for your specific business needs. They can be used to guarantee a wide variety of things, such as:
The business services you offer
Theft by your employees
Performance of contracted work, and payments being made to others.
Meeting deadlines or requirements
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.
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.
There are a few factors in play here:
The pricing for surety bonds will vary depending on the number of employees you have, your business activities, state/local requirements, your chosen deductibles, the amount of the contract, and the overall coverage amount.
Since there are so many factors to consider, we recommend speaking with a Bond Specialist at Links Insurance Services to ensure that you have the right protection.