If you operate in the construction industry, then you know that many of the projects you oversee, manage or even purchase are large investments – for businesses and stakeholders. Because of this, bid bonds serve as a protection vehicle for all stakeholders in a project. 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 Sammamish.
So what exactly are the different types of bid bond insurance? Here is a brief summary of the different types of bid bond insurance:
– Contract performance bonds – Holds a contractor accountable for the overall performance and on-time delivery of project specifications and deliverables
– License and permit bonds – “License bonds” or “permit bonds,” which are a type of commercial bonding.
– Payment bonds – Ensures that a contractor or subcontractor or supplier will be paid after the completion of a project.
– Bid bonds – Ensure that a developer pays for a project on the contracted or quoted price or bid.
– Supply bonds – Another type of “contract bond” that is also a legal contract that binds three entities.
– Maintenance bonds – A type of surety bond that protects a project owner from defects or errors in design and materials for a specific amount of time after a project is completed.
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 Sammamish..