Do I Need a Surety Bond for My Business?
London Insurance Agency provides small and large businesses with surety bonds to help your company grow.
Surety bonds are important facets of any business. These are legally binding contracts to ensure that all the obligations are met in the event of failures. The contracts serve as an assurance that government contracts are completed and it also protects businesses from dishonest employees.
What is a surety bond?
Surety bonds act as a promise by a surety company to pay the first-party if the second party fails to meet its obligations. It’s basically an agreement between three parties:
- Principal – person required to post bond and meet the obligations
- Obligee – government entity or person who needs the bond
- Surety – provides the financial guarantee to the obligee on behalf of the principal
The surety bond helps the small businesses or contractors to compete in the industry by assuring their customers that they will get the services and products promised. Simply put, a surety bond isn’t insurance for your business. Rather, it is insurance for the public, your customers, or people you are required to pay. It is one way of building a good name in the industry by making sure that your customers and potential clients will get what they paid for and ensuring them that you’re not running away.
Surety bonds are most necessary for contractors who want to work on government contracts. These are also required for businesses that are licensed by government entities. However, small and large businesses can take advantage of surety bonds when a contract is performance-based.
You can get a surety bond from insurance companies that specialize in general-purpose insurers. Our agents here at London Insurance Agency can work with you to get the best quote you can get.
London Insurance offers Kentucky Bonds for your business
London Insurance Agency specializes in giving Kentucky’s small and big businesses the kind of bond they need. We provide the following types of bonds:
- Contract bond -guarantees the entity with the contract that the company will meet its obligation under the terms stipulated in the contract. This includes bid bonds, performance bonds, payment bonds, supply bonds, and maintenance bonds.
- Subdivision bond – this bond guarantees the related entity that the developers will make ‘off-site’ and ‘public’ land improvements according to the state, county, or city’s specifications.
- Commercial surety bond – this ensures various businesses that obligations will be met. This includes non-contract surety bonds, license and permit, and miscellaneous and court bonds.
- License & Permit bond – this permit bond guarantees that individuals/businesses with the license or permit to operate will meet the obligations stated in the license of permit.
- Court bond – individuals with court bonds are to comply with the terms in the court bond including the probate and fiduciary bonds and immigration bonds.
Our agency is partnered with top-notch and well-trusted insurance agencies in Kentucky. Rest assured, our agents will provide you with the surety bond that your business needs. Call us now and schedule an appointment!
