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Not every business needs to be bonded, but bonds can provide an extra level of protection for projects you may be involved with. Depending on the type of work, you may be required to purchase a surety bond, before you begin a project.

As a reputable business your intention is do a professional job from start to finish. You may have to rely on others to get the job done however, and a mistake by a sub-contractor can cost you time, money and maybe even completion of the job. Bonds offer peace of mind to your customers, providing financial protection in the event that something goes wrong or work cannot be completed.

Bonding means that you have another company standing behind you that is essentially guaranteeing the quality of your work. Bonding sets obligations, in the form of rules that you are promising to fulfill, and that in doing so you will not create financial harm.This is a protection for those you are working with, giving them the assurance that work will be completed as expected or on time.

In the event that things do not proceed as set forth in the terms of the bond, your customer then has the right to make a claim. If the surety company determines that the rules laid out were not followed, they will make a payout. The lump sum benefit provided by the bond provides compensation, allowing them to go to another company to get the job done. You will then have to repay the bond to the surety company.

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