Most people associate bonds with a type of investment they speak to a bank about. However, bond insurance is something different. Bond insurance can be considered a type of investment, but its purpose is for businesses, investors, and other stakeholders. Bond insurance is a popular option for businesses to work with investors to gain access to and leverage resources, maximize opportunities, and grow and develop. However, similar to taking out a loan, bond insurance is a process that involves assessing an entity’s creditworthiness. Due to the high-risk nature of some bond issuers, bond insurance is designed to protect investors and other stakeholders in the event an issuer defaults on scheduled principal payments. To learn more about how bid bond insurance works, call the team at American Insure-All today for a bid bonds insurance broker in Monroe.
While bid bond insurance can be a resource used in just about any business, it is very common in the financial and construction industries as these types of businesses rely on contracts and bonds with other companies. For example, a bid bond between a contractor and developer will protect the developer from the contractor altering or increasing the quote provided to the developer upon bidding. Bid bonds also ensure that a contractor secures other performance and payment bonds as needed throughout the project in order to guarantee the overall quality of work and performance of the contractor.
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 Monroe