A surety bond is a business insurance rider that certain contractors must acquire before they can bid or work on a job. The federal government, state and local municipalities, and many private companies require contractors to have surety bonds. This is to protect clients and project owners in case the contractor quits before the project is done or fails to perform work in a satisfactory manner.
The bonds provide payment for services the contractor failed to render and cover the cost of finding a replacement. Surety bonds are especially prevalent in the construction field. There are up to four types that you may need to bid on and win jobs.
A bid bond guarantees that an individual contractor or company will pay all required fees and present a performance bond after winning the contract.
A payment bond is necessary to ensure all companies that provided supplies for the project and all subcontractors are paid according to the contract agreement.
This bond guarantees that all issues agreed upon in the contract are completed to the satisfaction of the project owner and customer. It excludes problems related to the actual performance of the contractor.
The performance bond guarantees satisfactory services by the contractor in accordance with the terms specified when he or she won the bid.
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Oyer, Macoviak and Associates is a family-owned business that has worked hard to develop relationships with customers since 1953. As an independent insurance agent for my family’s company, I take this responsibility seriously. I understand that every business owner has different insurance needs and I do everything possible to ensure that I meet them.
When you meet with me for the first time, I will ask you questions to learn more about your business and advise you accordingly. Please contact us to learn more about surety bonds and how they can protect your business interests.
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.