What is a Contractor Bond?
When you hire a contractor, you are often required to obtain a contractor's bond. This bond protects you from a variety of potential problems and saves both you and your customer. It protects you in case your contractor leaves before the completion of the project or fails to pay back for supplies that are not provided by him. It can also protect your employees and your business from lawsuits when a job goes poorly. You can find out more about this important policy by Getting a free quote from us.
How does Contractor Bond work and why do you need it?
In case of a claim, surety bonds pay for the expenses when the contractor fails to complete a project. While general liability insurance covers accidents and mistakes, a contractor bond will protect customers in case the contractor performs a project incorrectly.
There are many different types of contract bonds. Some are guaranteed by the Small Business Administration, which reimburses the surety for losses. The amount of money a surety will reimburse the contractor depends on the size of the contract, the working capital of the principal, and the manager’s experience. To qualify for a bond, the contractor must have at least 5% working capital in cash and should have sufficient cash flow to cover its current liabilities.
Who is Protected by a Contractor Bond?
Contractor bonds protect the guarantor against damages that occur during the course of the project. A contractor bond will also provide a legal way for a party to file a claim against a contractor. In most cases, a claim against a contractor bond is valid if the contractor fails to complete the project according to the contract terms.
Free Financial Advice
Contractor Bonds are bonded for certain projects, which are meant to protect the customer and the contractor. If you want to Purchase our contractor bonds policy or want to know more about Contractor Bonds insurance and how much they cost? Our financial advisors are here to help you choose the best policy that will meet your needs and budget. Get a Quote now.
Find the right contractors bonds
Stories and information to help you plan, prepare and protect what matters most.
Start with your zip code to contractors bonds
945+ Reviews
Already member? SIGN IN
Shelton Jenkins2023-09-12SHAKEEL AHMAD2023-09-11John Wingate2023-06-04Always responsive and great knowledge of finance. Their teams even stay late sometimes when I really need them to come through. Never been disappointed.Muhammad Adil2022-11-18I had marvelous experience of excellent service by having a meeting with Ms. Huma. She made me clearly understand different health plans with all the politeness and sense of responsibility. She done all that in a very short time on phone and enrolled me, thus saved my time and traveling hazard in going to a health insurance officeHuNtEr X2022-11-18Wajid Qaiser2022-11-18SGA Financial provide Best customer services
