Bonds
As a business, your financial security and reputation can often be destabilized by errors or accidents. Despite your best intentions, mistakes, delays and other unexpected mishaps may harm your clients and customers, who may then file lawsuits or spread the word about your shortcomings. Securing appropriate loss control measures, such as bonds, is essential.
What Is Bonds Insurance?
Although bonds may often be referred to as a type of insurance, their functionality differs from traditional insurance policies. While many types of coverage provide ongoing financial protection throughout a policy’s term (e.g., 6 or 12 months), bonds are typically purchased to limit financial risks for a specific job or contract. Still, the financial security offered by bonds may make them as integral to your company’s loss control measures as any type of insurance.
How Much Is Bonds Insurance?
Bonds insurance cost can vary greatly depending on your business’s unique circumstances, as well as the needs and preferences of your clients. In many cases, the following factors may play a role in determining costs:
- Industry
- Services or products offered
- Location
- Bond type
- Bond amount
- Credit score
Is Bonds Insurance Important?
Bonds may be a critical investment during your company’s darkest hours. By researching and acquiring the right bonds, you can establish robust and multifaceted financial protection for your business and its clients. Failing to secure appropriate loss control measures could mean other parties have no choice but to sue your business to recoup their damages, potentially leading to costly and time-consuming legal cases. Furthermore, bonds may be a prerequisite to even being considered for specific jobs, meaning that neglecting to do so could limit your prospects.
We’re Here to Help
At Facil Insurance, we are committed to helping businesses in the Phoenix area establish and maintain appropriate financial security. Contact our knowledgeable team today to learn more or to get a personalized bonds insurance quote.