Bonds in Fairfield, OH
As a business, you must implement and maintain appropriate risk management and loss control measures. This can often also include retaining the means to compensate other parties should you be at fault for their losses. Bonds should be a prioritized subject for your leaders and decision-makers to understand.
What Are Bonds?
Bonds are financial instruments often purchased from insurance companies to provide financial security and potential recourse for various parties that enter into formal business agreements. In many cases, bonds may be required for your business to even be eligible or considered for certain jobs.
Although bonds may often be casually referred to as a type of insurance, these products often differ from traditional insurance policies by providing financial protection during specific jobs or contracts. Meanwhile, insurance companies can respond to various situations involving several parties throughout a policy’s term.
Bonds may take many forms, but two of the most common are fidelity bonds, also known as honesty bonds, and surety bonds. The latter may also take many forms, many of which are considered types of commercial bonds.
Types of Commercial Bonds
Commercial bonds, also known as commercial surety bonds, are often purchased by many types of businesses to provide financial security and peace of mind for themselves and other parties with whom they do business.
Common types of commercial bonds may include the following:
- Contract bonds
- Performance bonds
- License and permit bonds
- Court bonds
- Fiduciary bonds
- Title bonds
- Miscellaneous bonds
How to Buy Commercial Bonds
When seeking surety and fidelity bonds, or other business bond insurance solutions, your company should ensure it works with a reputable and knowledgeable insurance company. At 1st Choice Insurance, we have a wealth of knowledge and experience regarding bonds and will utilize these resources to ensure you understand and secure ideal solutions.