A bond, also known as a surety bond, is a type of insurance to protect your assets, and back up promises made by someone else that affect your business. These bonds are backed by banks, savings and loans, credit unions, insurance companies, and finance and loan companies.
Imagine you’re the owner of a small construction contracting business. You subcontract with a dozen different contractors on the remodeling of a home. What happens if one of your subcontractors fails to deliver as promised?
If the electrical contractor doesn’t show up as promised, and you can’t continue work until the wiring is complete, your job could grind to a halt. Other contractors will be put off their schedules, and the homeowner will not get their project completed on time. They may even have to be out of the house for longer than they planned or budgeted for.
The homeowner may come after you for compensation, which could put your business or even your personal assets in the middle of a lawsuit. Your reputation may be damaged. A bond can help insure that your business remains untouched financially, so you don’t have to close your own doors over someone else’s lack of responsible business practice.
In this case, a construction bond is the right insurance product. That’s just one scenario where a bond is useful, however. There are dozens of types of commercial bonds available today for virtually every situation.
License and Permit Bonds
Receiver or Trustee Bond in Bankruptcy
There are also fidelity bonds and financial institution bonds, such as those used by banks.
If you think a bond is right for you, give Canyon Pacific Insurance Services a call today at 760-324-4100 to discuss your unique needs. We’ll set you up with the right bond for the coverage you need, so your business isn’t the one hurt when a promise is broken.