Bonds Insurance
As your business navigates its risks and exposures, you may often need to account for other parties’ financial interests. In situations where you agree to provide services to a client, customer or partner and fail to fulfill your obligations, the resulting financial losses and reputational ramifications could be significant. Fortunately, bonds insurance can help provide fiscal security and peace of mind for all parties.
What Is Bonds Insurance?
Bonds insurance is not a traditional insurance policy but refers to a type of financial tool often sold by insurers. These instruments can come in several forms, such as surety bonds and fidelity bonds, and generally act as reassurance that should your company come up short in its business obligations, other parties can recoup their losses without pursuing legal action.
How Much Is Bonds Insurance?
As your organization shops for bonds, insurance companies may analyze your circumstances to determine appropriate costs. While the weight given to various criteria can vary, the following factors are often considered:
- Type of bond
- Bond amount
- Industry
- Location
- Credit score
Is Bonds Insurance Important?
Bonds can provide essential financial protection for your clients, as well as your own business. If you or your employees are involved in accidents, errors, delays, criminal acts or other incidents that keep you from providing your promised services, affected parties could sue you for their losses. However, having bonds in place can provide compensation that may help avert lengthy, costly and public legal battles, minimizing financial and reputational harm. In many cases, such as when bidding on government contracts, your business may be required to retain bonds before even being considered for a job.
Learn More
With over 40 years of service in Cuyahoga Falls, the team at Garlesky Insurance Agency is well-equipped to help you understand and select the right bonds. Contact us today to get started.
