Insurance and bonds both provide financial compensation for claims, but they serve different purposes. Insurance safeguards businesses or professionals against damages, while bonds safeguard clients against potential harm. Businesses often obtain various types of bonds or bond insurance as a licensing requirement, a contractual obligation, or to build trust with prospective clients. If you need information about or are interested in acquiring bond insurance, consult with the Bartal Insurance team, serving the Scranton, PA, area.

Understanding Bond Insurance

A bond is a financial tool that compensates clients if a business fails to meet its contractual obligations due to non-performance, employee theft or dishonesty, or other situations resulting in loss. The business pays a third party, known as the surety, to guarantee the bond. If necessary, the surety pays the client and then seeks reimbursement from the business. Ultimately, bonds provide clients with assurance of compensation if the business fails to fulfill a contract.

Who Requires Bond Insurance?

Many businesses and professions, particularly those in construction and skilled trades, require bonds. These are often necessary for licensing, and there are various types of construction bonds related to bids, performance, and supplier payment.

Businesses that deploy employees to customer sites, such as janitorial firms, house cleaning services, and real estate agencies, need bonds to protect clients from potential employee theft. Similarly, information technology firms may need bonds to financially protect clients against potential theft or misuse of their data by the IT firm’s employees.

Most firms seeking contracts with government agencies also require bonds.

Collaborating with Bartal Insurance

The Bartal Insurance team caters to the insurance needs of individuals and businesses in the Scranton, PA, market. Call (570) 344-0211 to schedule an appointment or visit us to discuss your insurance needs.