How a Surety Bond Protects Your Business

2/22/2017 11:15:21 AM

Surety BondsThere are many forms of business insurance options that protect your business. If you are like many business owners, then you have quite a few. You may have commercial general liability, workers’ compensation, and commercial property insurance policies.

However, do you have surety bonds to protect your business from non-performing contractors?

What Is a Surety Bond?

A surety bond is an agreement between three parties. These are: the party requiring the work, the insurer, and the party performing the work.

A surety bond protects the party who requires the work if the performing party doesn’t do their job. Typically, government entities require contractors to have a surety bond. This is due to the nature of business when working with the government.

If the government uses surety bonds to protect its interests, why shouldn’t you?

How Can a Surety Bond Protect Your Business?

When it comes to protecting your business from the unknown, surety bonds come in handy. If you outsource any aspect of your business, then you know how stressful it can be selecting a company.

Sometimes, when outsourcing, you don’t know whether the work will meet your standards. You aren't even guaranteed that a contracted group will perform the work. With your business’ brand image on the line, it’s a risk you may not want to take.

You don’t have to forego business opportunities because you are afraid of related risks. Instead, you can buy a surety bond.

With a surety bond, you require the company that won the bid to invest in a risk of properly completing a job. Once they finish the work, they recoup their expenses with the monies paid to them for winning the bid.

So, if the contractor fail to perform, then the insurance company usually has to pay you. Essentially, your surety bond protects your business finances from performance failure.

You need to protect your business from risks. A surety bond will increase the chances that the contract will perform the work based on the requirements of the project.

We are here to help you get the surety bonds you need. Give us a call today at 888-751-7511 to get a Dallas surety bonds.

Tags : insurance, bond, surety bonds, dallas, business owners, texas