Also sometimes called a surety bond, this kind of insurance is designed to protect your assets and back up promises made by people you work with whose reliability affects your business. The bonds are backed by banks, credit unions, savings and loans, insurance companies, and finance companies.
How does a bond work in action? Let’s say you own a construction business in San Diego doing small contracting jobs, like home remodels. You subcontract some of the work you don’t do yourself, such as electrical and plumbing tasks.
If your electrician or plumber doesn’t show up for work, how do you finish the job? The property owner could come after you with a lawsuit, asking for damages for being displaced from the home or inconvenienced longer than the timetable they were given. Other subcontractors may not be able to work either, compounding the problem. If issues like this affect your reputation, you could go out of business.
However, a bond can cover you from the financial losses described above. When someone you work with behaves irresponsibly, you won’t wind up paying the ultimate price by losing your income or your business.
Many business types rely on bonds for professionalism and peace of mind. We have numerous bond types at our disposal to suit a wide range of business situations:
License and Permit Bonds
Receiver or Trustee Bond in Bankruptcy
Even banks use bonds, such as fidelity and financial institution bonds.
To learn more about how a bond might be right for your business, call The Insurance Place today at 760-643-2100 or get in touch online for a quote. If a promise is broken by one of your work associates, we don’t want your business to be the one that’s left hurting in the end.