Bonds

As your business strives to provide consistent and reliable services, accidents or delays may disrupt your plans. In these situations, you could face significant financial and reputational repercussions. Fortunately, bonds can provide your company and its clients with financial security and peace of mind amid crucial business agreements.

What Is Bonds Insurance?

Bonds insurance is a loss control instrument typically purchased from an insurance company. Often known simply as bonds, these arrangements do not typically provide a policyholder with ongoing coverage like an insurance policy. Rather, bonds are often purchased for a single business agreement, project or contract. These tools may come in many forms, although surety bonds and fidelity bonds are generally the most common.

How Much Is Bonds Insurance?

Insurance companies may need to weigh several factors when calculating a bonds insurance quote. This process can help companies determine their risk levels and price bonds accordingly. In many cases, this process may include consideration of the following:

• Type of bond
• Industry
• Services or products offered
• Location
• Bond amount
• Credit score

Is Bonds Insurance Important?

Securing appropriate bonds can ensure peace of mind and financial security. If an accident, error, or other unexpected situation keeps your company from fulfilling its agreed-upon obligations, your client may sustain significant losses. Without bonds, this could lead to costly and lengthy lawsuits, which may inflict both fiscal harm and reputational damage. In many cases, your business may even be required to retain certain bonds before being eligible to bid on a job.

Learn More

At Automatic Insurance, we have the knowledge and experience to help your business understand and secure sufficient bonds insurance coverage. Contact us today to learn more about your options and to begin laying the groundwork for robust financial security.