Performance Bonds Insurance
Providing Assurance to the Client
Whether it is bonds insurance or other financial assurances, smart contractors provide proof of their reliability before they take on a job. These financial instruments are as much a part of a contractor’s appeal as their past work. Now, more than ever, customers want to know their homes and businesses will be safe when they bring contractors in.
That is where a bond becomes a valuable tool for both the contractor and their client. For the contractor, it provides a selling tool for potential new clients. For new clients, it is a built in assurance that the job will be done, one-way or the other. Some areas require all contractors to hold a bond before they will issue a license.
To find bonds insurance or other financial assurances, a contractor needs to find a surety company to back them or an insurance agent to give them a policy. All of these financial instruments require premiums to keep them current. The amounts vary from contractor to contractor depending on experience and the size of the bond.
Shopping around for different companies will help keep costs down. Purchasing such an instrument provides the contractor with backup that will keep clients happy even before a job starts. It is also something that subcontractors and suppliers are happy to see as well. If a contractor walks off the job, many times those people do not see their money. A bond will prevent that occurrence.
Whether they are bonds insurance or other financial instruments, a contractor needs to keep that information handy at all times. When looking for new work, a client might ask for the information. It helps sell the contractor’s services to have all pertinent information on hand. Calling them later with the information may end up being too late to land the work.
With economics as they are, it is best to get the jobs landed whenever possible as soon as possible. It is also a good way to attract new subcontractors to your team. Keep it in your working notebook or portfolio. It is also a good idea to have that information available on a flyer.
Why do contractors need bonds insurance or other type of financial assurance? Many jurisdictions require that all contractors possess both a bond and a license. Even in places where it is not required, it is an excellent selling feature to new customers. It is also a piece of mind for the contractor. Sometime life happens and jobs go wrong. Those instruments are there to back the contractor up.
Find out more about bonds:
- California Surety Bonds
- Minnesota Surety Bonds
- Nevada Surety Bonds
- Oregon Surety Bonds
- Texas Surety Bonds
- Virginia Surety Bonds