What is bid bond insurance and how does it work? These are two of the most common questions the team at American Insure-All hears on a regular basis. Bid bond insurance is a risk mitigation tool that helps businesses maximize their growth opportunities. Purchasing bond insurance is a process that involves assessing and determining the overall creditworthiness and credit ratings of a bond issuer due to the risk involved in purchasing business assets. To learn more about how bid bond insurance works, call the team at American Insure-All today for a bid bonds insurance broker in Federal Way.
Entering a bond agreement with another business or entity means that the scheduled interest and principal payments are paid in the event that a bond issuer defaults on principal payments. Bond insurance protects the investor or other entity from the bond issuer defaulting on payments.
Bonds help businesses grow by allowing them access to more available resources all while maximizing their opportunities. For example, by establishing a bond with an investor, businesses can feel more secure about leveraging those resources in order to maximize growth while reducing overall financial risks. And in order to protect the financial risks of an investor or stakeholder, bid bond insurance ensures that all stakeholders receive payments.
At American Insure-All, our team of highly trained and reputable insurance agents has over 30 years experience working with businesses secure bond insurance.
Some of the common types of bond insurance include:
– Contract performance bonds
– License and permit bonds
– Payment bonds
– Bid bonds
– Supply bonds
– Maintenance Bonds
– And many others…
For more information on bid bond insurance, contact your local American Insure-All insurance agent for questions. Call American Insure-All today at (888)411-AUTO to speak with a bid bonds insurance broker in Federal Way.