Bid bonds offer businesses and investors and other stakeholders a number of options when entering an agreement. Bid bond insurance is also available to help protect the vested interests of all stakeholders in an agreement. To learn more how bid bond insurance works and about the different types of bid bond insurance, call the team at American Insure-All® today to speak with a bid bonds insurance broker in Woodway.
So how does bid bond insurance actually work? In one example, a business can partner with an investor to “borrow’ resources to use as capital to help grow the business without the financial risks. In this type of agreement, the bond issuer will purchase bond insurance in order to serve as a blanket of protection for the investor should the issuer default on payments. Due to the liability and risk involved in this scenario, the creditworthiness of a bond issuer is considered in the bid bond insurance process.
Bid bond insurance can be used to to guarantee bids, quotes, and performance of a contractor, such as in the construction industry. In another example, a contractor will often provide a bid or quote for a particular project. In many cases, it is in the contractor’s best interest to also secure bid bond insurance in order to ensure the developer that the contractor will not alter the bid or quote after the agreement is initiated. Bid bond insurance will also guarantee the quality of work and performance of a contract once the project breaks ground.
For more information on bid bond insurance, contact your local American Insure-All® insurance agent for questions. Call American Insure-All® today at (888)411-AUTO to learn more about working with a bid bonds insurance broker in Woodway.