Often, bonds provide a risk transfer option that lowers the overall cost of your risk management plan while covering situations in ways that regular insurance is not built to handle efficiently. That’s why so many industries use a combination of professional surety bonds and targeted insurance coverage. So how do you find a great resource for bonds when your business needs them? It’s easier than you think, because tailor-made bonds are a popular solution in enough industries to make bond underwriting a strong niche in the risk transfer community.
What Can a Surety Bond Cover?
Surety bonds can be written to cover most professional risks that have a known cost to the client if your professional obligations go unmet. This includes many of the reasons for issuing bonds in the construction industry, where they have long been a standard. It can also mean covering tax payment obligations, licensing requirements, payment and performance bonds, or a variety of other common bond types. While using a bond may not always be the most cost-efficient option for a particular risk, it is often the best option for professional performance-related risk management. To learn whether it’s the option for your business, you need to talk to an agent who specializes in the creation of custom bonds for companies like yours. Once you have a quote, it’s an easy matter to compare the overhead costs of bonds to either insurance or a combination purchase.