GDI Cares More About Securing Your Company. The basics of bonding.
Bonding is not insurance. Bonding is a risk transfer mechanism. A bond is typically tied to a certain performance being done. Or a bond such as a contractors license bond is posted so that consumers can get some relief if they are taken by a licensed contractor. This makes doing business with a bonded contractor safer than doing business with an unlicensed and un-bonded contractor.
The bond steps in and make the client also called the principle whole. The bond then seeks restitution from the bond obligee.
Bonds are very easy to get, some are a bit challenging. Most contractors also have bid bonds that then become performance and payment bonds.
These bonds typically are tied to a contract where the contractor is obligated to perform a certain task for a fee. The contract also may have to pay sub contractors and suppliers. If the contractor doesn’t complete the work as per the contract the performance bond will step in and make the principle holder of the bond whole. Also should the contractor fail to pay suppliers or sub contractors, then the Payment Bond portion will make those payments.
Just call GDI Insurance Agency, Inc. for all your bonding needs 1-888-991-2929.
Here are just a few types of bonds we can help with.
- Bid Bonds
- Payment Bonds
- Advance Payment Bonds
- Performance Bonds
- Bonds in place of a stand by letter of credit up to $10,000,000
- License and Permit Bonds such as
- Auctioneer Bond
- Real Estate Broker Bond
- Gas Tax Bond
- Alcohol Bond
- Contractors License Bond
- Insurance Brokers Bond
- Blanket Sub Contractors Bond
- Home Improvement Bond
- Auto Dealers Bond
- Motor Vehicle Bond
- Notary Bond
- Trash Collection Bonds
- Tax Bond
- Credit Enhancement Bonding
All your bonding needs right here right now… GDI Insurance Agency, Inc. does them all, and uses them to enhance credit, secure projects, and make sure you get what you pay for. GDI Cares More About Your Bonds!