Surety bonding is a fact of life in the construction and contracting industry. It’s the means by which construction companies not only protect themselves and their clients, but prove their own reputations. A company that carries the right bonding is sure to complete the job responsibilities to which they agreed, and if they can’t, their clients will receive compensation for the failure.
Too many contractors, however, confuse surety bonding with insurance and go to their insurance company to get bonded. This can be a serious mistake that can leave you without the essential protections you need. Learn why it’s important to work with experts in surety services instead of seeking bonding through an insurance company, and where you can go for help.
Surety Bonds vs. Insurance Policies
The first thing you need to understand, which most insurance agents won’t tell you, is that a surety bond is absolutely not the same thing as an insurance policy. Both provide a degree of protection on a job, but that’s where the similarities stop.
An insurance policy is in place to protect you and your company. It’s money that kicks in when something unforeseen or even tragic happens on the job site. It covers theft, damage to your equipment, damage that you cause to someone else’s property, medical bills for injuries and accidents, and other issues.
A surety bond, on the other hand, protects your service providers and clients. It’s money that will pay for your failure to complete your obligations. Depending on the type of bond you secure, it pays your subcontractors and materials providers. It pays your obligee in the event you can’t deliver. It’s also a loan that you have to pay back, unlike an insurance policy.
Why a Surety Expert Matters
For these reasons, among others, you want to work with a surety expert instead of an insurance agent. Surety bonding experts understand the unique nature of their field and the services they provide. They understand how bonds work, how they interact with your insurance policy and the services you provide, and they can not only get you bonded, but can educate you on the disconnect between bonds and insurance.
Getting the Service You Need
Another reason to work with a bonding expert is that too many insurance agents try to package and bundle everything. This all too often results in you paying way too much for a lot of representation you just don’t need. Navigating these packages can be very overwhelming and lead to you being more confused than ever.
Work with the Right Bonding Agent
The right surety expert will avoid the confusion, cut through the complexities, and help you to get exactly the bonds you need to protect your clients and keep you legal. The right bonding can enhance your reputation, especially if you don’t use the bonds. Work with a surety bonding agent and get the protection you need, when you need it, to bid on the jobs you want.
At National Surety Services, Inc., we’re here to make the process of surety bonding easy and fast. Give us a call for more information today!