INTERNET MARKETING

INTERNET MARKETING

INTERNET MARKETING

 

How Can Startups Get Government Contracts (Jun 2017)

Washington State New Rules on Crowdfunding (Jun 2017)

Kansas State Tax Increase (Jun 2017)

Highly Effective Tips for Business Success for Startups
Your Trucking Company May be Able to Save on Insurance by Installing Cameras
Business Owners, Want to Help the IRS Create Its New Website? It Will Only Take 7 to 9 Minutes
 States With No Corporate Income Tax Rate
 Ohio
Nevada
South Dakota
Texas
Washington
Wyoming 
Key Economic Indicators 
Item  Rate 
CPI: 0.1% (May 2017) 
GDP Growth:   1.2% (1st QTR 2017)
Prime Interest Rate:   4.25%
Consumer Confidence:  117.9% (May 2017) 
Small Biz Confidence:  104.5% (May 2017) 
Avg Gas Price:  $2.29 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

BUSINESS BONDING INSURANCE

 

Email this page    

 

 

What is Bonding Insurance?

Bonding usually refers to a type of surety guarantee that a specific project, service or act will be financially covered if performance is not complete or satisfactory. Some situations covered by bonding include non-completion of a contracted project or service, cost overruns, not meeting schedule, unsatisfactory quality of work, damage to a customer's property while a project is underway or injury to customer's personnel during work.

For example, projects or services involving construction, home health care, electrical contracting, real estate inspection, gardening services, delivery or moving services, etc.

 

Companies or individuals providing these services customarily secure a bond from a bonding company, assuring that if a customer's project is not completed or is not deemed to have been satisfactorily completed, the bonding company will reimburse the customer for financial loss.

Bonding is required because some customers will not contract work out to companies or individuals that are not bonded.

Bonding fees are charged based on the type of business and financial risk involved.  Most bonding companies have special packages for certain type of industries.  Pricing and Coverage is competitive.  You should shop around before deciding on a policy.

Types of Surety Bonds

There are two types of bonds:

(1). Contract Bonds (bid, performance, labor & material, payment, indemnity bonds);

(2).  License or permit bonds, which are required for many occupations, including contractors.

Contract Bonds:

BID BOND:
An obligation undertaken by a bidder promising that the bidder will, if awarded the contract within the time stipulated, enter into the contract and furnish the prescribed performance and payment bond's.

PERFORMANCE BOND:
A bond which promises that the terms of a contract, or some of them, will be performed by the Principal.

LABOR & MATERIAL BOND:
A bond that guarantees an owner (or general contractor) at a construction site that a contractor (or subcontractors) will pay for labor and material to be supplied. It protects the owner or contractor against liens from subcontractors, suppliers or laborers who are not paid.

PAYMENT BOND:
A bond which promises to pay some or all of the persons who provide  materials, labor, or services for prosecution of a contract.

INDEMNITY BOND:
A bond which promises to reimburse an Obligee for loss incurred when a Principal fails to perform its contract or (in some cases) fails to pay for material, services or labor used in prosecution of the contract.

LICENSE (Permit) AND MATERIAL BOND: 

A bond required of all licensed contractors in certain states for the benefit of specific persons designated by statue. Some of these states allow a cash deposit with the state in lieu of a bond

Finding Bonding Insurance Service Providers

See a list of Bonding Insurance Service Providers


            

 

Home

  

  

 

     
INTERNET MARKETING

                  Report broken links               Contact us              About us           Become a Contributor to this site            Link Exchange 

2012-2015 The Small Business Zone, Inc.  All rights reserved.