Bonds in Anderson, SC

For many businesses, bonds may be a necessary investment and a crucial component of adequate loss control measures. These financial tools can provide essential fiscal security and peace of mind for clients and customers as they enter formal business arrangements. However, while bonds are commonly utilized and even often required, they can be complicated and nuanced. Fortunately, working with a qualified team of professionals, such as those at Select Insurance, can help businesses understand and address their bond-related needs.

What Is Bond Insurance for a Business?

Bonds often work with insurance policies to form comprehensive loss control measures for businesses. Although bonds insurance may be a common term, organizations should understand that there are distinct differences between bonds and insurance policies. While insurance policies can often financially protect policyholders from various incidents occurring as long as the coverage remains active, bonds are typically used to secure financial interests for a specific contract or project.

What Do Bonds Cover?

Although they may come in many forms and have varying capabilities, bonds are generally used to provide financial compensation to businesses’ clients and customers. This can help all parties involved in a business agreement avoid potentially costly and drawn-out legal proceedings should a company fail to live up to its contractual obligations.

Two commonly utilized types of bonds in U.S. business agreements include the following:

• Surety bonds are typically used when a company agrees to provide products or services to a client. If these obligations are not adequately fulfilled, the bonds can provide the client with a way to recoup their financial losses.
• Fidelity bonds are often purchased to provide financial security in the wake of potentially criminal, dishonest or fraudulent acts committed by a business’s employees. For example, fidelity bonds can provide compensation if a cleaning company’s employees commit theft or damage property while at a client’s location.

Learn More

Contact Select Insurance today to learn more about bonds.