If you are looking into bid bond insurance, then you may be wondering what the difference is between bonds and bid bond insurance. Bonds are typically what you would speak to a bank representative about if you were to make an investment. While bid bond insurance can also be a type of business investment, it can also protect organizations and entities in agreements. To learn more, call the team at American Insure-All® today for a bid bonds insurance broker in Stanwood.
What is Bid Bond Insurance?
One example of bid bond insurance is when a business works with an investor in which a business will “borrow” an investor’s resources for growth and development purposes. Bid bond insurance protects the investor to ensure that they receive scheduled payments for both principal and interest in the event a business defaults on payments. Purchasing bid bond insurance also involves working with creditworthy bond issuers to determine overall risk and liability of a business.
What Are the Advantages of Bond Insurance?
In another example, bid bond insurance can also be a vehicle in contract agreements. For example, a developer might enter an agreement with a contractor who bid for a particular project to perform work. A developer may want to protect the organization from a contractor altering a quote or bid after a developer agrees to it. This is where bid bond insurance comes in; it offers a layer of protection for both entities.
Some of the common types of bid bond insurance include:
– Contract performance bonds
– License and permit bonds
– Payment bonds
– Bid bonds
– Supply bonds
– Maintenance Bonds
– And many more…
For more information on bond insurance, call American Insure-All® today at (888)411-AUTO to learn more about working with a bid bonds insurance broker in Stanwood.