In many industries, insurance is not the only risk management tool your company needs to be well-protected. Often, some form of the surety bond is also required, at least in certain circumstances. What is a surety bond? In its simplest form, it’s a bond that pays out to clients or other affected parties in the event that your side of a contract is not fully upheld. In practice, they can have a variety of purposes that are most specific, from bonds against substandard work that causes damage or injury to bonds that secure bids, with many other options in between.
When Do You Need a Surety Bond?
While most people associate bonding with construction contractors, the specialists at https://www.byrnesagency.com have to create a long list of business and personal financial situations that often call for bonds. Among them are sureties that protect corporate officers and those with a fiduciary duty to clients, as well as bonds for probate processes and many other variations on similar situations. If you’ve never explored what bonding could do to make your risk management plan more effective, it might be time to consult professionals whose focus is providing the right bonds for any situation. Balancing bonds and insurance can often be more cost-effective than leaning on insurance alone when you’re trying to streamline your overhead without giving up protection.