Surety bonds are imperative for businesses of all sizes, in multiple industries. These bonds allow customers to hold said businesses to a certain expectation for their performance, honesty, and integrity, mostly in many areas including retail, auto, mortgage brokering, and even cannabis. In construction, for instance, a surety bond is required to guarantee that a job will be completed in full and on time, things that can’t vary in that field. As important as these are to contractors and individuals, they’re just as important to businesses. Here’s a look at some of the benefits of surety bonds.
Strengthening Consumer Relations
Getting bonded and insured, like with Orlando Business Insurance Coverage, strengthens the relationship between consumer and business. The process requires a neutral third party to verify financial stability. When licensed and bonded, a company reflects its ability to meet financial guidelines. This creates confidence from customers as they now see a business has a financial guarantee.
Stakeholder Protection
A surety bond also protects the interests of other parties involved in a contract. Everyone from supplier materials to laborers to subcontractors can be assured they’re going to get payment because a contractor is bonded to make those payments happen.
Post-Project Period
Surety bonds don’t just last through the ending of the building part of a project. Instead, surety bonds extend to a maintenance period that could last a whole year after the project’ completion. Why? Just so that everyone is covered in case problems come up with the project, like adjustments or fixes to foundational or electrical issues.
When subcontractors and suppliers know they are protected by a payment bond, they may present lower rates. Without the risk of nonpayment, and the trust literally built into the project, a relationship between all parties has been developed.
Playing It Safe
Surety bonds provide a defense against false claims and act as clear cut representation when claims occur. With the signing of the indemnity agreement in the bond, the surety’s claims team are making decisions on everything to do with payment schedule. Everyone is covered, everyone is in the know about timing and scheduling, ensuring trust and responsibility.
About Newman Crane & Associates Insurance
Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Since 1965, Newman Crane & Associates Insurance has been helping Central Floridians make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (407) 859-3691 for a consultation.