What is a Surety Bond?
A surety bond guarantees that the obligations outlined in a specific contract are met. These obligations can range from construction deadlines to payment requirements, including license and permit bonds, public official bonds, and fiduciary and court bonds.
Why Surety Bonds are Good for Businesses
Surety bonds provide a level of confidence when choosing a contractor or other service provider because you know their performance is backed by the bond. It serves as a form of insurance, providing the client recourse if the contract terms aren’t met. This can be helpful when a smaller company is competing against a larger one, because it offers the potential client assurance the project will be completed as outlined.
What Types of Businesses Use Surety Bonds?
States have different requirements for businesses that must have surety bonds in order to get a license or permit, but even where it isn’t required, a surety bond can help your business secure contracts. Typical businesses that can benefit from bonding include construction, car dealers, mortgage brokers, private investigators, and more.
Search here for a local independent insurance agent to find out how Selective can provide a surety bond for your specific needs. When you call, don’t forget to ask about Selective’s value-added services, like PaySync®, Digital Policy, and our Mobile App.
For more information on the types of business insurance solutions Selective Insurance offers, visit Insurance Coverages for Your Business.