Bonds

Accounting for risks and exposures with appropriate loss control measures is essential for responsible business operations. In many cases, this process may include establishing and maintaining protections for the financial interests of other parties, such as your clients and customers. With this in mind, bonds may prove to be a crucial investment. 

What Is Bond Insurance for a Business? 

Bond insurance is not the same as most types of insurance. While typical insurance policies often establish ongoing financial protection for policyholders throughout a predetermined period, bonds are loss control products generally intended for a single project or contract.  

Still, while bonds may not function the same as traditional insurance, working with a qualified bond insurance company and securing appropriate products can still provide essential financial protection for businesses and limit out-of-pocket losses arising from accidents, errors and other unforeseen hardships.  

What Does Bond Insurance Cover? 

Bonds may come in many forms, but two of the most common types retained by U.S. businesses include the following: 

• Surety bonds can provide customers or clients with financial protection by ensuring they can recoup losses should a business they hire, such as a contractor, fail to provide promised services. 
• Fidelity bonds may help pay for losses and costs arising from dishonest, criminal or fraudulent acts committed by a business’s employees, such as if a cleaning or landscaping company’s workers damage or steal property while visiting a client’s location. 

Is Bond Insurance Important? 

Bonds can provide critical financial security and peace of mind for all parties involved in business agreements. By purchasing and maintaining the right bonds, your business can reassure its clients, customers and partners that should something go wrong during your work together, they will have a means of recouping their losses while often avoiding costly and time-consuming legal cases. Furthermore, bonds may often be required for your company to even be eligible to bid on certain jobs. 

We’re Here to Help 

As a knowledgeable and experienced bond insurance agency, The Byfield Agency is well-equipped to help you understand your options and secure appropriate financial protection. Contact us today to get started.