If you own a business, than you understand the importance of trust. The trust between you and your clients the trust you build between your contractors. To help foster these relationships, you may need to rely on Surety Bonds to help increase the trust between your business and the suppliers, customers, and organizations you deal with.
With Surety Bonds, there are three parties involved: the bond holder (the principal), the entity requiring the bond (the obligee) and the insurance company which offers the bond guaranteeing obligations that will be fulfilled. A bond premium is paid to the surety company in exchange for the bond they provide. A claim can arise if obligations are not satisfied. The surety will investigate the claim. If the claim is valid the surety will pay it, but will come to the bond holder for reimbursement.
Surety Bonds guarantee the performance of contracts. They are generally needed for the following businesses: general contractors, subcontractors, service contractors, heavy-equipment contractors, suppliers and manufacturers.
For certain businesses, the advantages that Surety Bonds offer, include:
• They do not present a significant drain on cash reserves
• They do not encumber balance sheets and are not reportable
• They allow for rate adjustments as the collateral fund grows
• Bonds avoid over-funding through the use of trust funds
• They allow for maximum efficiency of capital and resources, avoiding double funding
Acumen Insurance Group is a full service, independent Insurance brokerage. They provide contract surety facilities to a variety of construction companies, service contractors and manufacturers. Bonds are issued directly from their offices for all types of surety products. Their enthusiastic staff of licensed insurance professionals are ready to provide you the absolute best solutions for your insurance needs. For more information, visit www.acumeninsurance.com or email firstname.lastname@example.org.
View more articles.