What is an Insurance Bond?
Bonds guarantee your customers payment if your company does not meet conditions laid out in your contract’s terms. This business insurance agreement provides peace of mind to those who do business with you and helps establish trust in your relationship. Eventually, this can get the ball rolling for a long-term partnership if your teams continue to deliver the products and services you promise.
Many people confuse surety bonds with professional liability insurance (called E&O) and workers’ compensation insurance, which are not the same thing. Insurance carriers designed E&O to protect the insured like your business from losses while surety bonds safeguard third-party companies. Finally, workers’ comp will fund your employees in case of injuries they incur on the job.
If you need an insurance bond to place a bid or sign a contract for a new project, SunGate Insurance can tailor exactly what you need, when you need it! We are insurance bond experts and we understand the importance of getting it done right, quickly and easily.
Do I Need An Insurance Bond?
What Does An Insurance Bond Cover?
There are a wide variety of different types of insurance bonds. However, the four most commonly-required insurance bonds include:
- Bid Bond: A bid bond is one of the types of surety bonds, which guarantees that the bidder will enter into the contract and complete the contract according to its terms. It provides assurance to the project owner that the bidder has the know how and ability to complete the job once you are selected after winning the bid.
- Payment Bond: A payment bond is a surety bond issued to contractors that guarantees that the contractor will pay their subcontractors, material suppliers, and laborers in a timely fashion.Payment bonds are usually obtained by contractors or subcontractors prior to the commencement of a construction project. Their function is to guarantee that the labor and materials provided by subcontractors and suppliers to a general contractor will be paid for in due time and in compliance with the contract. These bonds also guarantee that payments for labor and material will comply with state and federal laws and regulations.
- Performance Bond: A performance bonds are a type of contractor or construction bond required by many project owners. They serve as a contractor’s guarantee to abide by the terms of the contract and complete the work accordingly. They also provide financial protection for the project owner in the event that a contractor becomes insolvent or for any other reason defaults on a contract.
- Ancillary Bond: A type of surety bond where the surety company guarantees other factors which are incidental and essential to the performance of a contract. It ensures the fulfillment of non-performance related requirements integral to the contract.
At SunGate Insurance Agency, our goal is to provide you with the insurance bond you need, quickly and easily! Contact us today find the bond that works for you!
Contact SunGate Insurance Agency today learn more about the type of insurance you need. Click here to contact us or call (407) 878-7979.
SunGate Insurance Agency Coverage
Home Insurance, Auto Insurance, Health Insurance, Group Health Insurance, Property Insurance, RV Insurance, Renters Insurance, Event Insurance, Insurance Bonds, Life Insurance, Business Insurance, Workers Comp, Flood Insurance, Personal and Commercial Umbrella Insurance and more!
Located in Lake Mary, Florida (serving clients Nationwide and locally in Orlando, Maitland, Heathrow, Longwood, Windermere, Kissimmee, Orange County, Seminole County, Lake County, Ocala, Clermont, Leesburg, Mt. Dora, Winter Garden, Davenport and surrounding Central Florida areas.)