Making Sense of Surety Bonds
Surety bonds are an insurance product purchased by businesses or individuals who want to demonstrate good faith to their clients. There are several types of surety bonds; construction bonds are commonly used by people within the building industry. Typically a Maryland construction bond is purchased to provide assurance to a client that a job will be completed under the terms of a contractual agreement; if the job is left undone then the bond provides the financial means to complete the original task.
How a Construction Bond Protects You
Construction bonds provide a range of benefits to business owners. The bonds you purchase help guarantee your ability to pay utility bills, taxes, and other essential expenses. Many municipalities require contractors to carry a Maryland construction bond of a certain value in order to receive valid licensing. A current bond also provides assurance to your customers that you take your work seriously and are going to work hard at every job you take.
Other Surety Bonds
There are other types of surety bonds. These function in the same way as a Maryland construction bond though are specific to other tasks:
- General contractor’s license
- Plumber’s license
- Electrician’s license
- Real Estate broker bond
- Wrecking bond
For many professionals, buying surety bonds is a necessary part of doing business. Choose to work with an insurance company that has a proven history of providing bonds to other hardworking professionals. Your business will grow and thrive as a result.