If you have a company or are just starting your business, consider getting bond insurance to protect yourself and your assets. This insurance will give your company more flexibility in meeting financial obligations. With bond insurance, you will also have more opportunities to improve your balance sheet. If you are considering getting it, here are the two main types of bond insurance you should consider.
What Are the Types of Bonds Insurance?
The types are the following:
- Surety bond. It is a contract between three parties: the surety (insurance company), the principal (you or a customer), and the obligee (the entity that requires a bond). The purpose of this bond is to provide a financial guarantee to the obligee that the principal will fulfill their obligations. Depending on the type of the surety bond, these obligations could mean meeting the terms of contracts, complying with state or federal laws, and more.
- Personal bond. It is defined as an agreement by the defendant that they will return to court for all the hearings and proceedings as ordered.
The Insurance House – Reliable Insurance Agency In Arizona
If you live in Tucson, AZ, or any other nearby towns or areas, and you are shopping for bond insurance, do not hesitate to contact The Insurance House. Our insurance agency specializes in different types of insurance, including bond insurance as well. Whether you want to know more about this type of insurance or need help choosing the best policy based on your insurance needs and budget, we are here to help. We work with clients in Tucson, AZ, and other towns nearby. Feel free to visit our website or call us for more information.