Surety Bond

Surety Bond Insurance

Surety bond insurance can provide peace of mind by protecting significant investments in a project, regardless of whether the work is completed. This kind of insurance is prevalent in the construction sector and is frequently employed for government contracts.

Eber & Associates can guide you through the policy options to find the best coverage for your business. Regardless of the size of your business, surety bond insurance can help safeguard your investments.

When Do You Need Surety Bond Insurance?

A surety bond is a unique type of insurance where one person or organization pays for it while another person or organization receives the benefit.

For example: If a skilled contractor works on constructing an office building that caters to the needs of a government agency, the agency will want to protect taxpayers from incurring financial losses if the builder fails to complete the project or fall short of the contract requirements.

How Does Surety Bond Insurance Work?

The contractor purchases a surety bond by paying a premium to an insurer. If the contractor fails to deliver, the insurer will compensate the agency. One notable distinction between this type of insurance and regular insurance is that the insurer has the ability and intention to pursue the contractor in order to recover the funds.

The purpose of a surety bond is to provide the agency with peace of mind, knowing that they can avoid the hassle of pursuing the money themselves. This can save your business both time and money if the situation goes south.

Government agencies often require surety bonds; however, they can also be used by any two organizations. The person who buys the surety bond is known as “the principal,” while the individual who receives any payout is called “the obligee.”

Eber & Associates: Your Commercial Insurance Team

Eber & Associates is here to help your business succeed and protect your investments. Our team will walk you through your policy options to find the best coverage for your budget.

If you have any questions or need further information about surety bond insurance, give us a call or request a quote today.

Custom Insurance the Smart Way

When it comes to custom insurance solutions, you need a team you can trust to help you find the perfect fit. Let Eber & Associates guide you to a more secure tomorrow with the care, coverage, and confidence you deserve.