Whether you’re a large contractor working on a federal, state, or municipal project, a small contractor working on a commercial build, or a Main Street retailer, you will likely need some form of commercial bonds. In some industries, such as construction and auto dealerships, they are an everyday part of doing business. Some large interstate projects may require dozens or even hundreds of bonds.
Bonds are complex and contractual in nature. Recommending and securing commercial bonds can be so confusing that not all independent agents offer this service to their commercial clients. Hitchings Insurance Agency is licensed and has the expertise to guide you through what can be a complex and confusing financial mechanism. Our team includes bond and contract professionals who will help you secure the bonds you need to conduct your business.
Understanding Surety Bonds
Essentially, bonds are a type of guarantee designed to protect the public. Bonding is often mandated by federal, state, or local law, or required by large business projects and contracts. Bonds involve three parties: you, the Principal seeking a bond and performing a service; the Obligee, the party who requires the bond to protect their interests; and the Surety Issuer, who guarantees payment if the Principal fails to meet their obligations.
In simple terms, Surety Bonds offer the following guarantees and assurances:
- That you are qualified to hold a license in certain professions and will adhere to the laws related to that industry. (License & Permit Bonds)
- That you will do what you promised you would do in a bid, contract, or a project. (Bid Bonds, Contract Bonds)
- That you will complete the contract and pay all subcontractors and suppliers. (Performance and Payment Bonds)
There are a seemingly endless variety of bonds, some more common than others. Some are specific to a particular industry, such as Liquor Bonds or Auto Dealer Bonds. Many Ohio residents may also be familiar with Surety Bonds as a mechanism for proof of financial responsibility, as an alternative to Auto Insurance. (We can also help you secure bonds for that purpose.)
Whatever your commercial bonding needs, Hitchings Insurance Agency cuts through the red tape to help you get on with business. Our goal is making things easy for you so that you can focus on your work.
We invite you to learn why so many of your neighboring businesses trust Hitchings Insurance Agency to protect their operations. Discover the difference yourself – fill out a free quote form or call us at 419-423-9145.