There is no greater statement about the reliability and integrity of your company than being properly bonded. Surety bonding tells your customers and clients that you deliver on your promises, and knowing that their best interests are protected is an incentive for them to form a long-standing relationship with your business. There are different types of bonds for each situation, but no matter the circumstance, All Things Comp can help you find the bond that best meets your business needs.
Contract Bonds and Commercial Bonds
As a contractor, stakeholders may require that you obtain a contract bond before beginning work on a project. Contract bonds are a guarantee that you will fulfill your contractual obligations, and they can help set investors’ minds at ease. There are four basic types of contract bonds:
- Performance bonds – Protects the project owner from financial loss if you fail to adhere to the terms of the contract
- Bid bonds – Assures that the work you do is in line with the project bid
- Payment bonds – Guarantees that you are responsible for the cost of supplies and payments to your subcontractors
- Maintenance bonds – Asserts that you are responsible for facility repairs and upkeep for a set period of time
Similar to contract bonds, commercial bonds also provide protection to the client or customer. However, commercial bonds are specifically designed to ensure that businesses adhere to consumer protection laws. There are many different types of commercial bonds that coincide with specific industries or lines of business, and they are oftentimes prerequisites for obtaining a business license.
While contract and commercial bonds protect the customer, court bonds are designed to protect the court. Also known as judicial bonds, these bonds apply to civil cases and probate bonds. Judicial bonds are used by trustees and executors to ensure that the covered party is acting ethically and within the guidelines of the law.
If you are in need of a bond, contact All Things Comp and let us know how we can help. Call us at (731) 300-2210, or fill out the form on this page.