Do you need a surety bond to operate your business? The United States has more than 50,000 types of bonds and regulations surrounding them, but you won’t always need one to operate. Simply put, the bond is a three-party contract between you (the principal), your obligee (the company or government requiring the bond), and the surety (the bond provider). Use this guide to help you determine if you need one.
Do You Need a License?
Some businesses require a license to operate, and a surety bond may be part of the licensing requirements. This is typical for people who own businesses in industries such as mortgages, collections, motor vehicle dealing, or contracting.
Do You Want to Protect Your Business?
Naturally, you want to protect your business from possible problems. Depending on the situation, a surety bond may be the best way to do that. An optional fidelity bond protects you from employees who commit theft, fraud, or otherwise embezzle from your company. Some provide full coverage while others only cover certain employees or departments.
Do You Work in Construction?
Construction projects are the most common reasons someone may need a surety bond. Contract bonds allow you to bid on projects, ensure you perform up to a client’s standards, and ensure payment for employees, even if the client never pays. While not all construction jobs require bonding, being bonded does make you more likely to win a project bid.
Professionals such as those who work with iSure can help you determine your need for surety bonds in Miami FL. Learn more today!