Some business owners need to have a company guarantee they will do the job right. It may be required by law or be necessary for a permit you’re seeking. Or it could be something that is simply smart to have in your particular industry. Whatever the case, Briargate Insurance can help you review your needs and recommend the best course of action or bond for you.
What is a surety bond?
A surety bond is a contract between three parties – your business, the surety bond company and usually the person you are doing business with. Surety bonds are different from insurance. They simply guarantee that the work agreed upon is fulfilled.
How do I know if my business needs a surety bond?
Bond requirements vary by state but some of the typical businesses Briargate works with on surety bonds include auto dealers, businesses that do services in client homes (to protect from theft), contractors and attorneys. Ask our experienced bond professionals at Briargate to see if a bond makes sense for your business.
How does a surety bond work?
Surety bonds simply guarantee a specific task you are hired to do is fulfilled. Here’s how the process works: Your business purchases a bond to guarantee future work performance and the surety company backs the bond by providing a line of credit in case your business fails to fulfill the task. If your business fails to complete the task, the obligee that required the bond (typically a government agency) can make a claim and recover losses. The insurance company pays the loss, but your business will then be required to reimburse the insurance company for claims paid out.
Are there different types of bonds available?
Yes. Briargate works with four different types of surety bonds: contract bonds, commercial bonds, court bonds and fidelity bonds.
What is a contract bond?
This type of bond is typically used by contractors. Bonds in this category can include bid bonds, performance bonds, payment bonds or maintenance bonds for your next job. Briargate will work with you to consider assets, credit history and your project completion record to help establish the best bonds for your business.
What is a commercial bond?
Commercial bonds are often required by law or regulation. This includes license and permit bonds, public official bonds, notary bonds, federal bonds and a few others. If you find your business needs one of these to operate, let’s chat and we’ll help get you set up.
What is a court bond?
Sometimes those that are involved in a court case need a court bond until the outcome of the court case is reached. This simply ensures a person or entity will perform the legal duties and take on financial responsibility for the benefit of another until then. Appeal bonds and probate bonds are common types of court bonds Briargate helps set up.
What is a fidelity bond?
Fidelity bonds give your business an additional layer of protection against employee theft and dishonesty. Ask us if this type of bond makes sense for your business.