You work hard to build your reputation and protect your good name. Though honesty and integrity are important qualities, your business cannot get by on virtue alone. You may find that you must prove your business is trustworthy and reliable by purchasing a bond that upholds your word. It is a small step that helps establish your dependability long before you have a chance to show it. It also makes you more competitive and gives customers greater confidence in your business if you work in a marketplace that is marked by notoriety.
A surety bond is purchased when a business owner needs proof that he or she will uphold contractual and legal agreements. They are commonly purchased by businesses that work for hire, such as locksmiths, maid services, and general contractors. The bond guarantees that clients will be reimbursed for their losses if a job is not completed as agreed.
A bond serves as an insurance policy for the client – not the business owner. Essentially, the business owner is still personally responsible for any losses to the client, but the insurance company who issues that bond actually guarantees the payment. Should the business owner fail to pay a client’s claim, the bond issuer will pay the claim instead. However, the business owner’s assets may serve as collateral for the bond, meaning they could be liquidated in the event of an unpaid claim.
There are several types of surety bonds, some of which include:
Bid, Performance, and Payment Bonds
These assure clients that your business will provide services exactly as outlined in your agreement. The terms of a contract may be as strict or lenient as you are willing to accept; however, it is up to you to abide by the conditions and stipulations there within.
Public Official Bonds
If you are an elected or appointed public official, you may be required to post a bond that guarantees your integrity, experience, and performance. Your job – whether a tax collector, judge or other official – is defined by specific requirements and principles that the government and your constituents expect you to abide by. Bonds help ensure you will uphold the expectations as long as you are in office.
Private Surety Bonds
If you find yourself the executor of a complicated probate case, a bond can help protect heirs and creditors from fraud or incompetence. There are many scenarios in which a private surety bond could be necessary to assure your integrity in overseeing a legal process or entity.
A second type of bond – fidelity bonds – is insurance for both you and your client. When you purchase a fidelity bond, you are guaranteeing the honesty of the people who work for you, whether they are employees or subcontractors. Your customers will have peace of mind knowing that the people who work for you will do so with integrity. Should a dishonest or disgruntled employee commit fraud, theft, or forgery against a client or your business, the fidelity bond guarantees proper compensation.
Bonds for Businesses and Individuals in De Pere
If you need a bond for personal or business matters, let Brian Van De Hey Insurance help you get the coverage you need. No one knows the integrity of your business like you do, but everyone can know that you stand behind it. If you need to prove your dependability, call us today to find out if a bond could be right for you. We look forward to serving you soon.