As the owner of a company you require business insurance in Bethlehem, Pennsylvania, for a number of risks and exposures, depending on the type of business, and the people or equipment necessary to operate your company. Typically, contractors and those in the construction business need certain types of surety bonds to enable them to win bids for their services and ensure that the client is protected in the event of any unforeseen issues that threaten the completion of the project, and there are different bonds that are used for different purposes.
A surety bond, to put it in simple terminology, is a “reverse” insurance policy issued by the surety, a person who takes responsibility for another’s performance, or the payment of a debt on behalf of the principal (or second party). Your specific needs will dictate which bond may be necessary for you. Most sureties can provide any type of bond, including any or all of the following:
- Contract bonds – usually used by the construction industry in contracts involving a project owner (client or obligee) and a general contractor (principal) wherein the surety ensures that the contractor will adhere to the provisions of the contract.
- Commercial bonds – all other bonds including but not limited to:
- License and permit bonds – these are a guarantee from a Surety to a government and its constituents (obligee) that a company or contractor (principal) will comply with all statutes, state laws, municipal ordinances, and/or regulations.
- Court bonds – these bonds relate to courts of law (including judicial and fiduciary bonds). This bond’s purpose is to ensure a defendant returns to court. Once the bond amount is paid, the accused may go home until their court date.
- Public official bonds – a public official bond guarantees the honesty and faithful performance of a public official’s duties as prescribed by law or regulation.
Bonds should be an important part of your Bethlehem, Pennsylvania business insurance requirements. Speak to an agent about your needs today.