Gain Peace Of Mind That Your Assets Will Be Protected
with a Variety of Surety Bonds
A surety bond is a contract between multiple parties that ensures certain obligations are met. In most cases, the parties consist of the following: the person or business requiring the bond, the person or business who attains the bond (also called the principal), and the insurance company or surety that guarantees the principal can meet said obligations.
There are several reasons why you might need a surety bond. Below are the four of the most popular reasons:
1. Practicing Without a Bond Can Incur Penalties
There are multiple industries that require surety bonds to license their employees. Examples including contractors, private investigators and car dealers. In this case, the bond is a guarantee that you will conduct your business successfully and ethically. Without such a bond, you could face fines or even jail time.
By attaining a surety bond, it boosts consumer confidence in your business. Knowing you are bonded, they won’t risk their hard-earned money if you fail to provide the products or services they paid for.
2. Increases Credibility and Trustworthiness in a Business
3. An Affordable Alternative to a Letter of Credit
Letters of credit are alternatives to surety bonds that are issued by a bank. Because these letters of credit tie up a company’s credit and may have hidden fees, they tend to cost more than a comparable surety bond.
Surety bonds are typically only offered to those business owners who have good credit and a history of ethical business practices. Therefore, if your competitors are new to the industry, don’t have established credit or have shady business practices, you’ll stand miles above them as a bonded business owner.
4. Positions You as the Most Qualified Business Owner
Compass Insurance Group Offers
The Surety Bond You Need To Benefit Yourself or Your Business
Whether your goal is to protect yourself or your business, enhance your business’ credibility or stand apart from your competition, a surety bond may be just what you need. However, because there are so many types of surety bonds available, allow us to differentiate between them.
Also known as commercial bonds, these are the most common types of surety bonds. In order to get your professional license as an auto dealer, freight broker or a variety of other trades, you may need a license bond.
These types of bonds are needed for individual projects when construction contractors are bidding for public and private construction work. These bonds ensure the bonded contractor will fulfill the project according to the specified contract.
Fidelity bonds are centered around fraud and theft. By purchasing fidelity bonds, you minimize or negate the risks of theft, embezzlement and fraudulent acts towards your business.
A judicial bond, also called a court bond, guarantees that one will follow through on their obligations. These obligations could relate to paying legal costs, paying bail bonds or appeal bonds.
Also called probate or estate bonds, these are required of executors or individuals when handling the property of an estate.
Surety Bond Insurance
Protects Your Business
Rest assured that our surety bonds have stable, predictable rates. With good credit, they typically cost only one to three percent of the bond amount.
Have questions about whether you need a surety bond or which bond is right for your situation? Call one of our professional and licensed agents at 615-987-0067 or contact us now to insure your boat or personal watercraft.