Bonds
Accounting for potential accidents, incidents and other unexpected hurdles is a necessary part of your company’s plans and practices. Not doing so could have significant ramifications for your organization’s finances and future. With this in mind, decision-makers should understand the role bonds can play in a business’s loss control measures.
What Is Bonds Insurance?
Although often referred to as a type of insurance, bonds function differently than most traditional insurance policies. While insurance coverage usually covers certain risks or incidents throughout a policy’s term, bonds are typically purchased for a specific job or project. Still, while functionally different, bonds can provide financial security similar to insurance.
Is Bonds Insurance Important?
In many cases, your company may need to protect the financial interests of both itself and its business partners, clients and customers. Fortunately, bonds can fulfill this role in many situations by providing other parties with recourse should they suffer financial losses due to your organization’s shortcomings. For example, surety bonds can be purchased from an insurance company and used to recoup a client’s losses should a contractor or other business be unable to fulfill their obligations. Without retaining such bonds, a costly, lengthy and even public lawsuit could ensue, potentially heightening overall losses and damaging your reputation.
How Much Is Bonds Insurance?
Bonds may vary significantly in price depending on your unique circumstances. While the full list of criteria used by a bond insurance agency to determine costs may vary, the following may often be considered:
- Location
- Industry
- Type of bond
- Bond amount
- Credit score
We’re Here to Help
As an experienced bond insurance company, Cashway Auto Insurance is well-positioned to help your business understand its options and secure appropriate bonds. Contact us today to learn more.