Bonds are three-party contracts between guarantors (individuals, such as contractors), obligees (the entity requiring the bond), and bonding companies. Determining whether you need to get bonded, as well as for what purposes and for how much, depends on the nature of your work and the region you’ll be working in. In order to be licensed as a contractor in most states, … [Read more...]

  Bond insurance is a risk mitigation tool commonly used in general contracting and similar fields. Also known as “financial guaranty insurance,” bond insurance guarantees the repayment of the principal and all associated interest payments to bondholders in the event that a payment is defaulted by the issuer.   Clients typically want to see that contractors and … [Read more...]

  When you start a business, you want to take preventative and precautionary measures to ensure that you are also protecting your business. Dually, you will also want to ensure that you are protecting your customers. Becoming bonded and insured (if required) is the best way for businesses to go about this. 1. Check if You Need to Become Bonded The first step towards … [Read more...]

A performance bond is a type of contractor bond that is commonly issued to protect the client’s interests during a construction project. They are sometimes also called contract bonds. It is important to note that while performance bonds are often issued by insurance companies, they are not the same as liability insurance. It would be more accurate to think of them as … [Read more...]

  Licensed contractors — including electrical, plumbing, and other types of specialty contractors — can get contractor bonds to protect and inform their work across different projects. Surety bonds are different from general liability insurance, which primarily protects the contractor. Bonds are meant to protect the project, the contractor, and the individual or … [Read more...]