Bond Insurance
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What Is Bond Insurance?
Bond insurance helps protect your business and reassure your clients by covering losses if you fail to meet the terms of a contract. It also boosts your business’s credibility and provides coverage for various risks, including:
- Contract non-fulfillment
- Failure to meet industry regulations
- Employee theft or dishonesty
- Embezzlement
- Court-related losses
Whether you’re in construction, transportation, or another industry, bond insurance from SafeGuard Insurance in Laredo, TX, offers peace of mind and financial protection.
Surety bonds can vary from industry to industry. They are most common in the construction industry, but can be useful in other fields as well. This type of insurance may be compulsory in some circumstances, especially when a business works with a government entity.
What Are Some Common Types of Bond Insurance in Laredo?
The specifics of a bond insurance policy depend on the business purchasing the policy and its industry. A policy may include one or more of these common types of bond insurance.
Contract Bond
A contract bond protects a company’s customers if the business does not fulfill the terms of their contract, including issues such as missing deadlines, using the wrong materials, and failing to complete the project.
Commercial Bond
A commercial bond, most often required by government entities, guarantees that a business meets all regulations and requirements for their industry. This bond may be appropriate for businesses such as construction companies.
Fidelity Bond
A fidelity bond protects a business against dishonest employee actions, including theft and embezzlement. It is often most appropriate for businesses that handle large amounts of money or valuable items.
Court Bond
A court surety bond protects a business against specific court losses. This type of insurance often applies regardless of whether the business is the plaintiff or the defendant in the case.
Frequently Asked Questions
Learn more about bond insurance by exploring the answers to common questions, and then contact us for additional information.
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- How do I find the right bond insurance
for my business?Bond insurance can vary from business to business. To find the right policy for your company, you will need to consult with your agent, who can direct you toward the products that best fit your specific company and needs.
- How much does a surety bond cost?
The cost of your surety bond will depend upon your business and the type of bond insurance you purchase. Your SafeGuard Insurance Agency agent will help negotiate favorable rates and help you find coverage that meets your requirements and your budget.
- Am I legally required to buy a surety bond?
Possibly. Depending upon your business and specific contracts, you may be legally obligated to have surety bond insurance. Construction companies are most often required to have this type of insurance. Your agent can help you determine whether bond insurance is a necessity for your business.
- How do I find the right bond insurance
- Why do I need bond insurance?
In some cases, bond insurance will be required. Even if it is not required, bond insurance can benefit your business by improving your credibility among consumers and giving them the confidence to do business with you. In addition, bond insurance can protect you against financial loss in the event of employee theft or court losses. Ask your agent about whether or not bond insurance can benefit your company.
- Do new business owners pay more for bond insurance?
Possibly. If the business does not yet have a strong credit history, they may face higher premiums for their bond insurance. However, there are resources that can help you obtain the right surety bond insurance. Your agent can help you use these resources and negotiate rates that match your budget.
- Can I get surety bond insurance if I am “high risk”?
Factors such as an unfavorable credit score can make a business appear high risk to insurers. However, you may still be able to get surety bond insurance. Ask your agent for help in finding policies that might work for you.
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