At some point in your life or business endeavors, you may be required or wish to obtain a surety bond. If you have not been through the process of acquiring a surety bond in the past, you may wonder what it is, why you need one and how to apply for the proper bond.
A surety bond is an agreement that involves three parties and defines who will be liable in the event you do not meet your contractual obligations. It includes you as the performer of services, the receiver of services and the surety or the party that will answer for the default in which specified services are not completed due to any number of factors, such as failure to pay for labor and/or material costs or failure to meet commitments or requirements.
While it may seem like nothing more than an extra blanket of protection, a surety bond provides a business or individual with various benefits, including increasing the chances of securing future business, verification of financial fitness and assurance of holding extensive experience as related to the industry. Due to the comprehensive nature of the prequalification process, the reliability and high status of your company is established by its capability to secure a surety bond. The prequalification process can include an examination of your ability to perform the specified work based on the following: work references; overall industry experience; financial strength to pay wages, credit history; credit lines; and established bank account. By holding a surety bond, your company has a proven ability to meet contractual obligations, which puts your business in a favorable light. Also bonds are sometimes purchased by individuals, not by a business. Depending on the bond limit and guarantees required in the bond, some bonds require no credit/financial information or job experience.
If a project owner or the state in which you conduct business requires you to obtain a surety bond, the surety bond experts of Mark Twain Insurance Services can assist you in the application process and locate a surety bond that fits your needs. With so many bonds available, we can identify the proper coverage you need to satisfy all outlined requirements, whether you are in need of a bid, performance, or labor and materials payment surety bond. Contact the surety bond department of Sanguinetti & Co. Insurance today by calling 1-800-350-7700 to schedule your consultation appointment.