Bonding

Protect Your Business with Surety Bonds
The Basics of Bonding
Surety bonds, also known as contract bonds, provide a financial guarantee that a contractor will fulfill their obligations on a project. These bonds ensure that the project owner or investor is protected against issues like unfinished work or non-payment. There are several types of surety bonds, including:
- Bid bonds: Protect the project owner if the contractor fails to honor the bid. The owner can sue the contractor and the surety for any additional costs.
- Performance and payment bonds: Guarantee that the contractor will complete the project according to the contract and pay subcontractors or suppliers.
- Completion bonds: Ensure that a contractor will finish the project or provide funds to hire a new contractor.
- Subdivision bonds: Protect developers and municipalities if a contractor doesn’t complete public infrastructure work.
- License & permit bonds: Ensure businesses comply with local regulations when obtaining licenses or permits.
- Notary bonds: Protect clients from misconduct by a notary public.
- Court bonds: Required for legal proceedings like appeals or guardianships, ensuring legal obligations are met.
Why Are Surety Bonds Important?
Surety bonds help mitigate financial risks for businesses in the construction industry. They ensure that projects are completed, payments are made, and legal compliance is met, regardless of the business’s size or experience. These bonds offer:
- Minimized Financial Risk: Ensure project completion and protect against financial loss from non-payment or default.
- Project Protection: Performance and payment bonds and completion bonds protect business owners from having to complete projects themselves or cover additional costs.
- Compliance Assurance: License & permit bonds and court bonds ensure your business stays compliant with regulations and legal obligations.
What to Discuss With Your Agent
Before purchasing surety bonds, be prepared to discuss:
- Your business type and industry risks.
- The specific construction or legal projects you’ll be working on and the required contract bonds.
- The bid amount for the project and the bond amount required.
- Your financial standing and credit history to determine bond amounts.
- Your experience with surety bonds and bonding history.
- The bond provider’s reputation for customer service and claims handling.
Why Choose PDR Insurance for Your Surety Bonds?
At PDR Insurance, we offer various surety bonds, including bid bonds, performance and payment bonds, and license & permit bonds to safeguard your business. We help you select the right commercial surety bonds to protect your projects and meet legal requirements.
Contact PDR Insurance Today
Get the right surety bonds for your business with PDR Insurance. Whether you need contract bonds for a construction project or license & permit bonds for compliance, we’ve got you covered. Contact us today at 801-316-1390 or visit our contact page for a customized quote.
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