When we think of bonds, most of us think of savings bonds, which are acquired through a bank. However, a bond can also refer to an agreement or contract between businesses, investors, and other stakeholders. Bond issuers can also purchase bond insurance, which can help grow and protect a business and an investor’s assets in an agreement. To learn more, call the team at American Insure-All today for bid bonds insurance broker in Marysville.
What is Bond Insurance?
A business or investor can purchase bond insurance to ensure that scheduled interest and principal payments are paid to the bondholders in the event of default or even a breach in contract. This is also known as performance or surety bonds. Regardless of the type of bond or agreement, credit ratings are considered when securing bond insurance. This is because premium payments determine the overall risk and liability of a bond issuer.
What Are the Advantages of Bond Insurance?
Bonds help businesses grow and even offer a blanket of protection for both the business and investor. For example, by establishing a “bond” with an investor, companies can feel more confident about using other resources to maximize opportunities and reach growth goals without incurring financial risks. Bond insurance has proven to be a helpful resource and investment vehicle in the financial industries and even construction industries.
What Kind of Bond Insurance Types Are Available?
The team at American Insure-All is experienced in working with some of the following types of bond insurance:
– Contract performance bonds
– License and permit bonds
– Payment bonds
– Bid bonds
– Supply bonds
– Maintenance Bonds
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 bid bonds insurance broker in Marysville.