Bonds
Throughout your business’s operations, there may be times when you must account for other parties’ losses. After all, customers, clients and other business partners depend on you and your employees to deliver suitable services promptly, and failing to do so could have significant financial, reputational and legal repercussions. Fortunately, bonds can help provide financial security and peace of mind for you and other parties.
What Is Bonds Insurance?
Your organization should first understand that bonds insurance may be a common term, but it can be somewhat misleading. Bonds are not technically a type of insurance, although they may provide similar financial protection and loss control potential. While insurance policies are typically ongoing arrangements that provide coverage for various incidents, bonds are generally purchased for a specific job, contract or project.
Why Is Bonds Insurance Important?
Bonds can provide critical financial security for your organization while assuring parties with whom you enter into business agreements that they will have a means of recouping financial losses should you fail to fulfill your obligations. For example, contractors may often purchase surety bonds to ensure developers can recover funds if work goes unfinished or is otherwise unsatisfactory. This can help all parties avoid costly and lengthy legal battles. In many cases, bonds may even be required for a company to be eligible for a job or contract.
How Much Does Bonds Insurance Cost?
The cost of appropriate bonds can vary significantly depending on your company’s and clients’ unique circumstances. In many cases, the following factors may contribute to determining costs:
- Type of bond
- Industry risks
- Location
- Bond amount
- Credit score
Learn More
At The Kimberlee Agency, we pride ourselves on helping businesses, families and individuals in and around Roland, Oklahoma, secure their financial interests. Our team is well-versed in the subject of bonds and will work with you to help you understand and secure these essential loss control measures. Contact us today to get started.