If you run a business in the construction industry, then you know that your projects are significant investments for your company, buyers and investors. This is why there is a series of bonds available to serve as agreements and offer protection for all stakeholders involved in the construction and transaction of 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 Seattle.
Here is a quick break down of the different types of bid bond insurance available:
– Contract performance bonds – Ensures that a contractor provides acceptable and satisfactory work according to project specifications and standards
– License and permit bonds – “License bonds” or “permit bonds,” which serve as a type of commercial bond between businesses
– Payment bonds – Ensures that a contractor, 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 Seattle.