Bonding is an under-discussed aspect of risk management that more businesses need to understand as they grow. While many people are familiar with it as a customer protection policy for contractors and other service professionals who work with consumers as well as businesses, the uses of these bonds go much further. International corporations often use surety bonds to manage their risks with regard to the performance of their subcontractors beyond construction and building maintenance. Other uses include:
- Payment bonds that kick in if a contractor fails to pay subcontractors
- Bid bonds to help ensure contractors purchase the required performance bonds
- Performance bonds protecting clients during the contract
Get Help With Bonds When You Need Them
The right surety bond provider will help you understand more about their uses, the right bond amounts for different situations, and the best ways to use these bonds in combination with traditional business insurance products. Companies like Moody Insurance publish helpful information for customers regularly to improve knowledge about these powerful risk management tools and to help customers access them where and when they’re needed. If you are wondering whether you can save money over your current provider, you’ll need to start by shopping quotes. If you’re looking for a first provider, it’s a good idea to work with people who are going to help you understand the products you buy.