Bonds Quote Forms
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Being bonded can provide several benefits for your business. Since bonds provide financial assurances to your clients that contracts will be fulfilled, having such coverage can help you build trust with them. Additionally, some jobs may only hire companies that are bonded. The professionals at E.A. Funk and Associates, Inc. can discuss the different types of bonds available and how they may be advantageous for your business. Give us a call today to learn more.
What Is a Surety Bond?
A surety bond is an aspect of consumer protection. Being bonded provides your clients with financial assurances that a contract will be fulfilled in accordance with its terms. A surety bond is an agreement between three parties:
The obligee is the party that receives the benefits from the bond (e.g., the client).
The surety is the entity that underwrites the bond (e.g., the insurance company).
If the principal fails to full its contractual obligations to the obligee, the obligee may file a claim against the surety bond and receive compensation from the surety. The surety may then seek reimbursement from the principal for those expenses.
Types of Surety Bonds
There are several types of surety bonds, including:
Bid Bond—This type of bond provides assurances that a contractor submitted a bid in good faith and will finish the job as outlined in the bid.
Payment Bond—A payment bond provides assurances that parties involved in the contract (e.g., subcontractors and suppliers) will be paid.
Performance Bond—This type of bond provides assurances that the obligations listed in the contract will be met.
Several other types of bonds may be available and different projects or project phases may require specific bond coverages.
Contact Us Today
The professional at E.A. Funk and Associates can help you navigate the complexities of bonds. Give us a call at 631.467.4747 to learn more about the available options and how being bonded can benefit your business.