We can help you secure the surety bonds necessary for your contracts and projects.
If you are a contractor or you are having a building constructed, one of protections you’ll need to better understand is that of surety bonding. There are three parties to a surety bond: the contractor, the contract owner, and the surety company. The key purpose of surety bonding is to reduce or prevent risks involved with a construction project.
The contract owner generally requires surety bonding for three reasons:
- To ensure the bid placed by the contractor was done in good faith and that they will perform the work they are contracted to do at the bid amount. This is called a bid bond.
- To protect the contract owner from financial loss if the contractor doesn’t perform based on the terms and conditions of the contract. This is called a performance bond.
- To ensure that the contractor pays everyone connected with the project, including material suppliers and subcontractors. This is called a payment bond.
At Legacy Insurance Partners, including Faw Insurance in North Wilkesboro, North Carolina, we can help you secure the surety bonds necessary for your contracts and projects. We are happy to further explain how surety bonds work and what protections they provide. Our team is always focused on helping you minimize the financial hardship of various risks that can affect your business. We look forward to the opportunity to review your policies and advise you if there are any vulnerability gaps that should be addressed.
If you would like to learn more about surety bonds or any of the commercial insurance products we can advise you about, reach out to our team.
With surety bonding representatives serving the communities of Asheville, Davidson, Greensboro, Hickory, North Wilkesboro, Albemarle, and Raleigh, North Carolina, our team at Legacy Insurance Partners is available to partner as your trusted business insurance advisor utilizing a cons