We understand contractors and the need to get bonds QUICKLY
When taking on a new project, you likely spend some time assessing the risks that come with the task in front of you.
We also understand that working in the construction industry brings with it a lot of unique risks
That raises the question: what exactly is a surety bond? We understand that there can be a bit of confusion out there when it comes to bonds. Contractors often deal with many different types of bonds. They are a requirement necessary to cover the risks involved in the industry.
First it might be helpful to understand what a bond is NOT
- A bond is NOT a form of insurance. A bond is a financial guarantee or a form of credit
- A bond is a loan made to a company
- A bond is security that can be bought and sold
- A bond is a form of payment in many cases, as it can guarantee payment
- Bid bonds which guaranty that a contractor will enter into a contract if they win the bid
- Performance bonds which guaranty that a contractor will perform the work as outline in the contract
- Payment bonds which guaranty that a contractor will pay for services, particularly making sure that all of the subcontractors are paid as well as all of the materials
- Maintenance bonds which guaranty that a contractor will provide maintenance, repair and upkeep for a specified period of time
If the parties agree to require bonding, additional forms, such as the performance bond contract AIA Document 311 provide common terms.
How much will my Surety bond cost?
What is a Fidelity Bond?
Finally, why choose InsuranceHub to help you with your bonds?
That means contractors need them fast and they need everything to go nice and easy. That is where we come in. InsuranceHub has been helping contractors with their insurance and bonding since 1985. Our job is to make your life easier by providing you with counseling, insurance, and bonds you need in a timely manner.