If you work in the construction industry, then you are likely looking for an experienced, professional, and reputable bid bond insurance broker to help them with contract management. Although the term “bonds” seems like something that you would need to go to the bank for, bond insurance works a little differently. Bond insurance is a type of insurance, but for construction companies who need to purchase insurance in order to protect themselves – and a developer – after bidding for a project. Similar to taking out a loan, bond insurance is a process that involves working with credit-worthy entities. This protects investors in the event that the bond purchaser defaults on principal payments. To learn more about how bid bond insurance works, or why your business needs it, then call the team at American Insure-All today for a bid bonds insurance broker in Edmonds.
Working with a reputable and experienced bid bonds insurance broker in Bothell can help businesses understands both sides of a contract before entering an agreement. Bid bond insurance is also known as a surety bond, which is a risk mitigation tool or a form of credit for contractors and developers.
Consider an example: A developer receives a bid from a contractor for a project. In order to ensure that the contractor holds up his or her end of the bargain and sticking to the quoted price, the contractor will purchase bond insurance, which protects the developer from paying a higher amount than what was originally quoted. Bid bonds also require the contractor to secure other necessary means of performance and payment bonds as required throughout the project in order to guarantee his or her work.
For more information on bid bonds for construction, performance bonds, surety bonds, or to speak with a qualified broker, call American Insure-All today at (888)411-AUTO for a bid bonds insurance broker in Edmonds.