Protecting your Contractor Business with a Bond


If you’re a construction expert and you work on bigger projects, chances are you will need a contractors bond. A contractor bond is a kind of surety bond. Just like another type of surety bonds, the relationship between the client and the contractor is solidified, giving insurance which the contractor has to follow through on their project management and financial obligations.

Surety bonds normally bring together the construction contractor, the bond company, and the people the company works for in a mutual assurance relationship which is dependent on due diligence. Be sure to do your research when looking for a bonding agency to protect your company. Choose an agency who has experience within the industry and will provide pricing from several surety companies.

Who Needs a Contractor’s Bond?

As a contractor, it’s your duty to get a contractor license bond which is based on the anticipated work volume. This bond protects the agencies of government and consumers you work with.

Getting a contractor bond is just a routine part of taking on huge construction contracts. Contractor Bond gives assurance that you have devoted to doing this project based on regulations and that your consumer is protected from any financial loss if the project didn’t go as planned.

How Does a Bond Help to Protect the Obligee?

As a contractor, when you buy a surety bond, you enter into a kind of three-party relationship where the person or government agency which requests the bond is known as the obligee. The bond will protect the obligee in case the contractor, don’t perform the project as already planned.

The surety bond agency in the middle of the relationship that examines the financial and organizational background of the contractor to make sure that the contractor can responsibly and ethically manage their projects and their business. If the contractor doesn’t follow this obligation through, the surety bond will be there as a backup. It acts as a kind of insurance for the obligee to ensure that a personal or government agency won’t end up with a project that’s half-completed.

Is Getting a  Bond Really Worth It?

This can be an asset to your business. As handymen bring small fix-it projects as a result of their price, quality, and reputation. When you are working on large contracts, you need to be bonded. Usually, bonding brings in the professional to examine your financial and business situation.

If you’re prepared to get bonded, then try us. We have relationships with many insurance carriers meaning we can not get you bonded only, but at the best price also. We allow you to view free quotes for the bond for you to compare prices before you purchase.

Leave a Reply

Your email address will not be published. Required fields are marked *