Are you a contractor? Trying to grow your business? Then it is important to carry bond insurance. In fact, most consumers will verify that you have this insurance before hiring you. Bonding protects the consumer if you fail to complete a job for whatever reason. It also protects consumers in the event that permits aren’t paid for or it if there is a failure to meet other financial obligations, this might include paying for supplies or subcontractors or covering damage that workers cause to a client’s property. Liability insurance covers such situations as contractor-caused damage to consumer property, although it doesn’t typically pay for repairing or replacing shoddy work. That is the reason for the bond.
We offer several different types of bonds:
Surety bonds have wide applications in the business world, but only a few types are relevant when dealing with home improvement contractors:
- Performance and Completion Bond: Tells buyers that they are protected and ensures that work will be completed to their satisfaction, as outlined in the contract.
- Payment Bonds: These bonds protect buyers against claims from subcontractors. In the event that the contractor hired doesn’t pay for material, the buyer is not held liable.
- License and Permits Bond: In the even that state authorities require licenses or permits to conduct business, contractors may be required to purchase these bonds. Provisions may vary from one location to the next.
Not sure what type of coverage is needed for your business? Call and speak with a specialist today.