A key responsibility for local business owners in Erie, CO, is protecting their business from unforeseen risks. Knowing the difference between a bond and traditional insurance helps local business owners make more informed financial decisions.
Advantage Service Insurance, serving Erie, CO, provides key insights into the differences between bonds and traditional insurance that every local business owner should know.
Traditional Business Insurance Basics
Most local business owners assume that having traditional insurance protects their company from extensive financial losses. Traditional insurance policies for business owners typically cover incidents not related to woek, including property damage, liability claims, natural disasters, and theft.
While these protections are crucial, investing in a bond adds a safeguard to protect your clients, customers, and the general public.
Bonds
Bonds, or “surety bonds,” guarantee that your company can deliver on its service agreements, promises, and customer contracts. Having a bond tells your clients, vendors, and the public that you care about their interests and your company intends to fulfill the obligations of your business agreements, even if the unexpected happens.
When You Need a Bond
The following are a few examples of how bonds work and when you might need one:
Construction projects: Contractors provide performance bonds to guarantee that projects are completed according to contract terms and deadlines.
Service contracts: Cleaning and landscaping companies can use contract bonds to assure clients they will provide the agreed-upon services.
Fidelity protection: Surety bonds can help local businesses protect their clients against employee theft and fraud.
Talk to a trusted insurance agent at Advantage Service Insurance to learn more about how you can create a total business insurance solution that protects your business property, assets, and clients.
