NJ Commercial Insurance Bonds
Bonds may not exactly count as insurance, but in most cases they provide a degree of assurance. In some industries, they serve as a necessary means of backing up your obligations to the people who hire you. In other instances, they serve to protect your business from the actions of duplicitous employees, contractors, or subcontractors.
Types of Bonds
There are many different types of bonds. The first bonds to explore are contract bonds. There are essentially three different types of contract bonds that Bogle Agency Insurance handles on a regular basis.
1) Performance Bonds
Sometimes referred to as a contract bond, the performance bond serves as surety that the terms of a contract will be fulfilled on time.
2) Bid Bonds
According to the terms of the contract upon the winning of the bid, these bonds offer a guarantee that work will begin.
3) Payment Bonds
This particular bond offers assurances that the main contractor will dispense appropriate payments to all subcontractors and vendors.
The purpose of bonds, after all, is take some of the risk or uncertainty away for project owners when contracting help. These are not the only types of bonds available through Bogle Agency Insurance, though.
Other bonds we offer that apply to business include the following:
Indemnity bonds provide assurances that the project will end as scheduled. If the project is not delivered on time and as promised, then the contractor has promised to indemnify the purchaser against losses stemming from the failure to deliver by the prescribed deadline.
These bonds are important because they guarantee that the principal will follow the codes and regulations established by the Obligee (typically a government entity).
NJ Commercial Insurance Bonds | Are Bonds Necessary for Businesses?
Some businesses will never have a need for a bond. Other businesses in other industries will use them on a fairly regular basis. They are tools for establishing credibility and make you, as the contractor, a partner in risk if things do not go according to schedule.
They also serve as added incentive for you to meet deadlines, achieve goals, and avoid taking any shortcuts that could place the project in jeopardy.
While most of the bonds mentioned above are considered part and parcel for people in the construction and, on occasion, manufacturing industries, there are other bonds that interest business owners for different reasons, such as fidelity bonds, which offer businesses protection from the actions of employees for actions like embezzlement and other financial or legal losses related to an employee’s dishonesty or incompetence.
Finally, there is the environmental surety bond, which is something businesses are becoming increasingly interested in. These bonds are for businesses that are interested in sustainability and provider assurance that the planet was protected throughout the building process.
NJ Commercial Insurance Bonds | Why Choose Bogle Agency Insurance for Your Bonds Needs?
Bogle Agency Insurance has been a force in the field of insurance for more than 90 years. We take great pride in our attention to detail and dedication to protecting the people who trust their homes and businesses to us. That’s one reason we believe we’ve earned the status as a “Best Practices Agency” for 11 consecutive years.
Contact us today at (201) 939-1076 to learn more about bonds and what they can mean for your business. Our highly trained and friendly agents will walk you through the bond process and help you determine if that’s the right move for your business needs.