Surety Bonds and Insurances: Are They the Same?
There are many who confuse surety bonds with insurances, as they are both a means to protect finances. But, in their execution of this goal, they serve different purposes. Confusing the two or using them interchangeably can stop your business from growing. In the world of construction, constructions projects may require a surety bond. With that in mind, the public construction sector is always building and is a good avenue for a contractor to grow their business. And even many private sector construction jobs require surety bonds. Having a knowledgeable surety bond producer can help you to grow your business. Consider them an important tool in your tool box. Here are some important things to know: A surety bond is a contractual agreement between the project owner or client, the contractor or business and the surety bond producer. The surety bond producer ensures that they have vetted the business and that they are financially sound. If the business owner does not fulfill the contractual obligations, then the client can file a claim. If found to be in default of the contract, the client will then receive financial compensation. Surety bonds and insurances are NOT the same thing. Therefore, when...
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