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.

Commercial business insurance is a type of insurance coverage designed to protect your business from risk. The professionals at Bartal Insurance in Scranton, PA can provide you with all the answers you need to ensure your business is safe from any mishap.

Commercial property insurance is the most common business coverage, as it safeguards tools, office furniture and equipment, and other property from both damage and theft.

There are many different events that could impact your business:

Company cars could get stolen, or drivers could be involved in an accident.
A severe weather event or fire could damage business property.
Money or company property could be stolen by dishonest employees or thieves.
Customers could sue you over potential injuries if they get hurt on your property.

However, there are other types of business insurance. Consider the following coverage:

Business income insurance
Commercial property insurance
Data breach insurance
General liability insurance
Workers’ compensation insurance

Here are some reasons why business insurance coverage is recommended:

Contracts entered into may require business insurance.
Business insurance can help with costs in the event of a lawsuit.
Most states require insurance protection for businesses.
Business insurance can help employee retention and aid in recruiting new employees.
Many areas of the country suffer from natural disasters occasionally. Business insurance offers protection if disaster strikes.
Business insurance protects customers, employees, and management.
Business insurance helps build credibility.
Probably the most important advantage of having business insurance is the peace of mind it offers.

The knowledgeable insurance professionals at Bartel Insurance have the experience needed to design business insurance policies to provide the protection you require. They are a locally owned and operated agency committed to providing quality insurance products.

Using product knowledge and strong insurance background, they help clients prepare for any type of potential risk. Contact Bartel Insurance in Scranton, PA today to ensure your business is protected.