Bonds and your business.

Bonds And Your Business.

Bonding is another way of protecting your company. It may also offer opportunities for growth. Many jobs require that you be bonded. If you get bonding, then you will be in competition for work that might not have been eligible for.

Types of Bonds

There are many different types of bonds.
Contract Bonds-The bond assures that you will meet the terms of the contract.
Subdivision Bonds-A local government authority requires this for public work, roads or street lights.
Bid Bond-As the name implies it supports your bid.
Performance and Payment-Refers to the standards set for the work and protects performance and payments if you fail to meet those standards.

What information do you need to get bonded?

There are certain pieces of information that a bonding agent will need, depending on the type of bond you desire.

Contract Bond
You need to bring company end of the year financials
Cash Verification for both your business and personal.
Bank Lines of Credit verification
Resumes for key people
Reference Letters
Accounts Receivable information, if any
Contractor’s Application this will be supplied by bonding agent
Personal Financial Statements for each of the owners and stockholders
Contract Status Report- work that you have on hand.

Subdivision Bond
Request Form for Site Improvement
Personal Financial Statement
Corporate Financial Statement
Letter from the County or City stating the bond requirements, indicating improvements and dollar amounts.
Resume or Company Biography to prove your experience in development of subdivisions
First Page of Bank Statements to show corporate and personal cash
Letter from your Bank to prove funding is in place for the project

Bid Bonds, Performance and Payment Bonds.

Bid Bond Request
Contact information for your company and the party that you are submitting the bid to.
Bid Date
Bid Estimate
Liquidated Damages per day
Bid Bond %
Completion Time
Warrantee Period

Performance and Payment
Contact info for you and the contractee.
Contract Description
Contract Price
Liquidated Damages per day
Completion Time
Warrantee Period

Getting bonded is worth the time and effort spent. Once bonded it is one effective way to grow and protect your business.

Request that one of our multi-state licensed experienced business insurance bond brokers contact you below.

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