There are many different bonds available that cover a range of different issues. Choosing which bond is best for you is never an easy task.
Surety bonds have a long history that spans almost 5000 years with the discovery of a Mesopotamian tablet containing this idea in a basic form. The first of the modern-day corporate bond practices began in England in 1840 and are now used worldwide.
There are a lot of different surety companies that offer bonds to businesses and individuals, and it is important that you look at the details of the bond agreement to see exactly what is covered under your policy. You should try to find a policy that gives you the most options and protection possible, even if it exceeds the legal requirement in your state.
You should also research some claims that have been made against the type of bond that you require to hold. This will give you an idea of the process that will occur should you find that an individual or business is claiming losses against your bond.
Most companies that issue bonds are available online and have excellent websites detailing what their bond policies will cover. You should also be able to obtain a fast online quote if your business has a straightforward bond requirement that will give you an idea of what you may be required to pay annually for your policy. These figures are only an estimate, and may change dependant on how many employees you have within your business. These figures can also change dependent on the risk assessment that the surety will complete. If the surety believes you to have a high risk of default based on employment history or credit ratings, your premiums may increase or in some cases, you may not qualify to receive a bond policy at all.
To choose which bond is best for you is not necessarily choosing the cheapest option available, or the most expensive. You should choose a bond issuer that listens to your needs and tailors your cover to suit your business requirements as well as maintaining all issues pertaining to local laws. Most companies allow you to package bonds should your business require more than one type of bond agreement.
Business bonds are in place to protect your clients, employers and the general public. Your bond is an advertisement to prospective clients and employers that they are safe doing business with you as you have the financial backing of another, third party Company that will come to their aid should your business fail in any way to provide adequate and legal work, or should your employees behave in an unethical manner. Your bond should be tailored to meet the needs of your company so that your business is able to assure all members of the general public that you are a trusted and safe company to establish a working relationship with.