If you operate in the construction industry, then you likely have heard of the various types of bonds and bid bond insurance. The construction of any type of project is a large investment, so both contractors and developers want to make sure they are protected against default payments, defects in design, and other risks. So how do you know which type of bond insurance 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 Renton.
Here is a summary of the most common types of bid bond insurance:
– Contract performance bonds – This type of bond or agreement ensures that a contractor, subcontractor or supplier provides a service or project deliverables as per the standards and terms and conditions of a contract.
– License and permit bonds – These types of bonds are also known as “license bonds” or “permit bonds,” which are a type of commercial bonding. These types of bonds protect consumers ensuring that businesses adhere to laws and other regulations enforced by federal, state and local government agencies.
– Payment bonds – This is a type of “surety bond”, which ensures that a contractor or subcontractor or supplier will be paid after a project is completed.
– Bid bonds – These types of bonds ensure that a developer pays for a project per the contracted price or bid.
– Supply bonds – Another type of surety bond that falls under the category of “contract bonds”. Surety bonds are a legal contract for three or more entities.
– Maintenance bonds – This is yet another type of surety bond that protects the project owner from defects or errors in design and materials after a project is completed for a specified amount of time.
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 Renton.