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If you are a contractor and you're not very familiar with bonds, don't worry...you will be. Most public works projects will require you to have Performance, Payment and Bid bonds to even work on their project. Here's where it gets kind of confusing, though - bonds aren't actually insurance. They can be viewed as an insurance of sorts, but they are really a guarantee. You're guaranteeing someone that you are going to get their work done according to the contract. For example, the Performance bond guarantees you will perform the contractually agreed upon work. The Payment bond guarantees that all sub-contractors and vendors will be paid, and the Bid bond guarantees that you will begin the work if and when you win the bid for the job.
Other types of bonds you may run into include Indemnity bonds and License bonds. An Indemnity bond guarantees any losses should a party fail to meet deadlines. A License bond is guaranteed to a state or federal agency. It doesn't matter whether your business is large or small; the need for bonds can pop up anytime. Some contractors may need a bond in addition to their license just to do their job - that bond simply says you will follow the laws of your job wherever you are licensed.
Still completely confused about bonds and whether or not you may need some? Don't worry, we're here to help! Just call Keats Agency at 888.804.5744 or fill out our easy-to-use online contact form. We will be able to discuss bonds with you, which ones may be best to suit your needs and provide you with a completely free quote.