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What is an Insurance Bond?
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An insurance bond ensures contract completion in the event of contractor default and are typically required by project owners when seeking a contractor to fulfill a contract.
The contractor obtains a bond so the insurance company is obligated to compensate the project owner for the financial loss incurred if the work is not completed. ​
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Typical Insurance Bond Types
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Although there are many types of insurance bonds, the four most common types needed by business owners are:
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Bid Bond - Ensures the bidder on a contract will enter into the contract and furnish the required payment and performance bonds if awarded the contract.
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Payment Bond - Ensures suppliers and subcontractors are paid for work performed under the contract.
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Performance Bond - Ensures the contract will be completed in accordance with the terms and conditions of the contract.
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Ancillary Bond - Ensures requirements integral to the contract, but not directly performance related, are performed.
Contact us to learn more about the right insurance bond for you.
(877) 717-7234​
Parish, NY 13131​
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Get a quote for an insurance bond
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