Trying to navigate the many different insurance options that you should purchase in order to give your business maximum protection can be a daunting task. There are so many different types of insurance-related products that you can choose from, including surety bonds that are designed to financially back up a business-related promise. If the promise is not met, the surety bond covers the costs of the broken promise or deal. Here are a few things to keep in mind when considering whether or not to purchase a surety bond.
Contract Surety Bonds
If you are a contractor, supplier, or manufacturer, then a contract surety bond can offer your company significant monetary protection in the event that you are obligated by contract to guarantee your performance. In these cases, you may be required to have a contract surety bond as insurance in case you fail to complete your contract according to your agreement.
If you are a developer or builder, you should protect yourself with a developer bond. This type of bond is usually required by law and typically functions to guarantee that any development improvements will be made at the expense of the bond-holder or developer, and not a different party.
A Medicare bond is more like a line of credit than insurance coverage, and its purpose is to offer protection for Medicare fraud (fraudulent overpayments).
If you want or need an extra level of financial protection for your company, talk to a trusted insurance company about purchasing a surety bond in MD.