While bonds are often thought of as an investment tool, bond insurance works a little differently. Bond insurance helps businesses to acquire access to resources that would otherwise be unavailable due to a lack of available or affordable resources. Purchasing bond insurance involves a credit check and review due to the high-risk nature of entering into a “bond” agreement with another entity. To learn more about how bid bond insurance works, call the team at American Insure-All today for a bid bonds insurance broker in Lynnwood.
Entering a bond agreement with another business or investor is a process, and securing bond insurance is a part of that process. Bond insurance ensures that the scheduled interest and principal payments are paid should a bond issuer, such as a business, defaults on principal payments. This is why credit ratings are considered when securing bond insurance.
To learn more about how bond insurance works, consider an example. A “bond” involves entering into an agreement with a business and potential investor. Bond insurance protects the investor from incurring a loss or damages due to default payments and/ or a breach in contract. Bond insurance has helped businesses in various industries, such as the financial industry and construction industry, where agreements and bonds are most common.
At American Insure-All, our professional team of insurance agents is experienced in working with all different kinds of businesses to find them the best type of bond insurance to allow them to maximize growth opportunities and establish a reputation in working with other entities.
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 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 reputable bid bonds insurance broker in Lynnwood.