If you operate in the construction industry, then you likely have heard of bid bonds and bid bond insurance. This type of insurance is also known as contract performance bonds, surety bonds, and license and permit bonds, just to name a few. But what is the difference between these types of bonds? What are the risks? And how do you know which is right for your business or organization? To learn about the costs, risks, and types of bid bond insurance, contact a reputable and experienced bid bonds insurance broker in Redmond.
So what exactly are the different types of bid bond insurance? Some of the common types of bid bond insurance include:
– Contract performance bonds – This type of bond or agreement ensures that a contractor or another supplier provides a service or project deliverables on time and up to acceptable performance standards.
– License and permit bonds – These are also known as “license bonds” or “permit bonds,” which are a type of commercial bonding. For example, these types of bonds protect consumers by guaranteeing businesses adhere to laws and other regulations enforced by federal, state and local government agencies.
– Payment bonds – Also more commonly referred to as a “surety bond”, this type of bond ensures that a contractor or subcontractor or supplier will be paid for a project.
– Bid bonds – These types of bonds ensure that a developer pays for a project on the contracted or quoted price or bid. This protects a business, such as a developer, from a contractor altering or increasing a bid post-agreement.
– Supply bonds – Another type of surety bond that falls under the category of “contract bonds”. However, surety bonds are a legal contract for three or more entities.
– Maintenance Bonds – Another type of surety bond purchased by a contractor that offers a layer of protection for the project owner from defects or errors in design and materials for a specific amount of time after a project is completed.
American Insure-All® has been working with different types of businesses find the right type of bid bond insurance, including contract performance bonds, payment bonds, surety bonds, supply bonds, and so on for over thirty years. We can help your business too. Find out why hundreds of satisfied customers can’t be wrong.
Call the experienced team of insurance agents at American Insure-All® today at (888)411-AUTO to learn more about working with a bid bonds insurance broker in Redmond.