Simply put, surety bonding provides assurances and peace of mind. Whether you are a contractor guaranteeing the quality of your work, or a business owner promising to adhere to industry regulations, bonding allows both the principal party and the obligee to conduct business together knowing that there is a failsafe in place.
While there are many different types of bonds, the point of each is the same: to guarantee that promises are kept. With stakeholder investments on the line, contract bonds are often a requirement for contractors and subcontractors alike. Likewise, commercial bonds protect consumers by guaranteeing ethical behavior on the part of business owners.
State and federal regulations for businesses and their owners are in place to protect consumers. But, how do consumers know that regulatory compliances have been met? When it comes to license and permit regulations, commercial bonds ensure that companies act ethically and within the parameters of the law. There are many types of commercial bonds that are generally particular to an industry or occupation, including, but not limited to, the following:
- Athletic Agent
- Collection Agency
- Contractor’s License
- Credit Services
- Health Care Professional
- Mortgage Brokers
- Motor Vehicle/Used Car Dealer
- Tax Preparer
Entering into a contract for goods and services can be unnerving for stakeholders without the proper contract bonds in place. Bid, performance, payment and maintenance bonds guarantee that contractors fulfill their contractual obligations. Investors and developers are more likely to enter into contractual agreements with contractors knowing that they are protected against financial loss due to shoddy work, unpaid subcontractors, or the failure to provide facilities maintenance or repairs.
At DiVirgilio Insurance, we understand the importance of bonding and work closely with our clients to make sure they have the proper bond at the best possible rate. Working with a wide variety of surety companies allows us to create bond agreements that are both affordable and comprehensive. Call us at 781-592-5220 to learn more about how our agency can help your business.