Types of Bonds you Can’t Do Without
Types of bonds you can’t do without depend on the nature of your business and the level of protection you want. It takes many years of hard work to build a successful business and not having the right insurance can cost you everything; don’t take any chances, consult a reputable insurance agent today about the kind of coverage you need.
Four Important Types of Bonds
Performance Bond Insurance
Performance bonds are a fundamental element of the construction industry. A performance bond ensures that if a contractor cannot fulfill their obligations the party issuing the contract will be compensated for any financial loss they experience as a result. Performance bonds are obligatory for all state projects. Performance bonds are often packaged with payment bonds which obligate a contractor to pay for their own materials and labor.
License Bond
These types of bonds are a must for any business that requires a specific license to operate. The bond is required to protect your business should some costly incident occur involving the license. For example, if your business serves food then a license bond might be of use if someone gets sick after eating in your restaurant.
Fidelity Bond
A fidelity bond protects your business from employee dishonesty. Obviously no business owner likes to think that their employees would abuse their positions but unfortunately large workforces entail exactly such risk. It is possible to insure for all your workers or just one if that one is entrusted with more responsibility, cash box keys or security codes for example.
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