When you need a bond, you probably needed it… well, yesterday. Since you cannot start a project without the proper bond, you’ll need to get started on the process right away. But don’t stress. We can help.
Berrier Insurance strives to provide you with the straightforward answers and the no BS solutions. When it comes to bonds, we make no exception. Here is what you need to know:
- A bond is NOT a form of insurance. Instead, a bond is a financial guarantee or a form of credit that contractors will seek out before beginning a project.
- A bond is a form of security that may be bought and/or sold.
- In many cases, a bond is a form of payment – this is because it can guarantee payment.
Aside from understanding the basics of a contractor bond, you should also understand that you have options. Depending on your project, and the requirements in your state, you may have to acquire a different bond. The good news is that when the rules change, or things get confusing, we can handle the blurred lines and keep your project going.
There are many types of bonds out there. Here are two types of surety bonds – bonds that guarantee payment – that are of particular importance to contractors:
- Bid Bond: Ensures suppliers and subcontractors are paid for work performed under the contract.
- Payment Bond: Ensures suppliers and subcontractors are paid for work performed under the contract.
- Performance Bond: Ensures suppliers and subcontractors are paid for work performed under the contract.
- License or Permit Bond: This is a bond that is guaranteed to a state or federal agency. This bond will guarantee to pay a specific amount if the principal should fail to abide by the license terms.
For contractors, bonds are required for licensing and insurance and essentially, everything you do! Let us make sure you don’t have to jump through any hoops to get your project going. We serve all of California, Oregon, Arizona, Nevada, Utah, Idaho, North Dakota, and Washington. Give us a call at 800-750-1812 today or fill out our online quote form.
Let’s share some blueprints, shall we?